New Lower 48 Oil Drilling Not Enough to Offset Existing Well Declines, Says EIA

U.S. oil production increased by an estimated 10.8 million b/d in August as Lower 48 operators brought wells back online in response to rising prices after curtailing production amid low demand in the second quarter, according to the U.S. Energy Information Administration (EIA).

In the latest Short-Term Energy Outlook (STEO) issued on Wednesday, EIA said June output was 10.4 million b/d, 0.7 million b/d more than estimated in the last month’s report.  However, even with higher realized production levels, U.S. oil output for 4Q2021 and in 2021 “is relatively unchanged.”

Domestic oil output is forecast to rise to 11.2 million b/d this month as production in the Gulf of Mexico returns following Hurricane Laura.

“However, after September, EIA expects U.S. crude oil...