Oil prices dip as EIA ups production forecast

U.S. oil production will be greater than previously forecast in 2018 and 2019, the U.S. Energy Information Administration (EIA), reported on Tuesday – and oil prices fell in response.

Continue Reading Below

In their latest short-term energy outlook, released Tuesday, the EIA said it expects U.S. crude oil production will average 10.9 million barrels per day (b/d) in 2018, up from 9.4 million b/d in 2017. In 2019, production will be even higher, an average of 12.1 million b/d.

Thanks to the shale oil boom, the U.S. has become a major player in global energy production. This year, U.S. oil refining hit its highest level on record.

As previously reported by FOX Business, Interior Secretary Ryan Zinke said in October that the U.S. is on its way to producing 14 million barrels of oil per day very soon, but acknowledged that the country will face some regulatory and structural “hurdles” along the way. He added that the production side is “well within its capability” to reach 14 million barrels per day by 2020.