BAKU, Azerbaijan, June 16. The US is expected to witness significant growth in its crude oil and condensate production, Trend reports.
According to OPEC's estimations, the country's production is projected to increase by 0.6 mb/d year-on-year, reaching an average of 11.9 mb/d in 2022. This uptick indicates a positive trend for the country's energy sector.
Looking ahead to 2023, US liquids production, excluding processing gains, is forecasted to expand by 1.1 mb/d year-on-year, averaging 20.3 mb/d. This represents a noteworthy increase of 20,000 b/d, compared to the previous assessment. The first quarter of 2023 saw higher-than-expected output, which partially offset a slightly lower forecast for the remainder of the year.
Encouraging factors contributing to this positive outlook include improved drilling activity and reduced supply chain and logistical challenges in the prominent Permian, Eagle Ford, and Bakken shale regions. These favorable conditions are expected to persist throughout 2023, supporting the growth of the US energy industry.
With a solid level of oil field drilling and well completions, crude oil output is predicted to rise by 0.7 mb/d year-on-year, averaging 12.6 mb/d. Furthermore, tight crude output in 2023 is anticipated to reach an average of 8.6 mb/d, marking a year-on-year increase of 0.7 mb/d.
In addition to crude oil, other forms of energy production are also expected to see growth. NGLs production and non-conventional liquids, particularly ethanol, are projected to increase by 0.3 mb/d and 40,000 b/d year-on-year, averaging 6.2 mb/d and 1.5 mb/d, respectively. These estimations take into account factors such as ongoing capital discipline, reduced inflationary pressure, and moderate supply chain issues and oil field service constraints related to labor and equipment.
However, challenges are expected to persist, particularly in the hydraulic fracking and professional labor market, which may continue to pose difficulties for US upstream producers this year. Nevertheless, the overall forecast remains positive, highlighting the potential for growth in the US crude oil and liquids production sector in the coming years.