The U.S. Department of Energy on Tuesday signaled it is now more confident that U.S. oil production will rise to 10 million barrels a day next year, the highest average annual level on the books.
The department’s Energy Information Administration forecast output would surge to the historic level in 2018 after last month projecting the country would produce just shy of 10 million barrels a day next year. The previous record average was 9.6 million barrels a day in 1970.
“Increased drilling activity in U.S. tight oil basins, especially those located in Texas, is the main contributor to oil production growth, as the total number of active rigs drilling for oil in the United States has more than doubled over the past 12 months,” EIA
The revision is another sign that U.S. drillers are taking full advantage of higher oil prices buoyed by OPEC‘s deal with crude exporters to limit production in a bid to shrink a global oversupply. Output in the American oil patch has surged about 9 percent to 9.3 million barrels over the last eight months.