US oil production seen hitting 13m barrels a day in 2020 | Financial Times

US oil production seen hitting 13m barrels a day in 2020 | Financial Times:

US oil production is expected to hit new milestones faster than previously thought amid booming shale activity, according to the latest forecasts from the US Energy Information Administration.

The EIA said Tuesday it now expects domestic crude output to average a record high of 12.4m barrels a day in 2019, up from its estimate of 12.1m barrels a day just a month ago. The agency also raised its forecast for 2020 production to 13.2m barrels a day from 12.9m.

The rosier outlook reflects an increase in productive wells, both in the Permian Basin of Texas and the Gulf of Mexico, and the expectation that Permian pipeline constraints won’t slow growth as much as projected in January, the EIA said in its monthly short-term energy outlook.