U.S. Oil Production Recovers Ground but Existing Well Declines Remain a Drag, Says EIA

U.S. crude oil production rebounded in September, though researchers anticipate new declines in the coming months.

Oil production climbed to an estimated 11.2 million b/d in September from 10.8 million b/d in August, the Energy Information Administration (EIA) said in the latest Short-Term Energy Outlook (STEO). Production averaged 11.0 million b/d in July, up 0.5 million b/d from June.

In May, U.S. oil production reached a two-and-a-half-year low of 10.0 million b/d amid cratered oil prices after the pandemic crushed demand.

“Since then, U.S. production has increased mainly because tight oil operators have brought wells back online in response to rising prices,” researchers said. However, EIA expects oil production to taper in the coming months and “generally decline...