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Page added on July 1, 2016
Oil production in continental U.S. has fallen sharply since 2015 peak
Oil production in the nation’s lower 48 states has dropped by 800,000 barrels a day in the 12 months after it peaked, one of the biggest reasons why the world’s oil glut has eased.
A dramatic surge in oil drilling and fracking across Texas and North Dakota pushed production outside of Alaska and the Gulf of Mexico to a peak of 7.6 million barrels a day in April 2015. But by this April, the production had fallen to 6.8 million barrels a day, the Energy Information Administration said in a monthly report on Thursday.
“It’s gone a long way to help out the oil market,” said R.T. Dukes, an analyst at energy research firm Wood Mackenzie, which believes continental U.S. oil production will fall to 6.4 million barrels a day over the next year or so.
Though crude prices have risen near $50 a barrel and more drillers have become active in the oil patch again, it’s probably too late to reverse the decline in production, Dukes said.
“Even if you’re putting a rig back to work today, it’s not adding regular wells for four to six months,” he said. “The decisions made today affect production next year.”
The decline in onshore U.S. production has been somewhat masked by the Gulf of Mexico, where output has held fairly steady and even risen in some months since the downturn in energy prices began two years ago.
10 Comments on "Oil production in continental U.S. has fallen sharply since 2015 peak"
PracticalMaina on Fri, 1st Jul 2016 11:10 am
Wow, importing over 4 million more than we were in 1996. What a savior fracking was, it managed to save us from investing in renewables and efficiency.
PracticalMaina on Fri, 1st Jul 2016 11:11 am
Damn, read the chart wrong…
MikeX11.2 on Fri, 1st Jul 2016 12:30 pm
The graph doesn’t show what the title postulates:
Go to the gov site:
-Petro consumption down
-Natural gas and Solar/Wind up, but solar/wind are small, but, they’re on the chart and growing rapidly.
-Coal: Way Down
-Nuclear slightly down.
http://www.eia.gov/todayinenergy/detail.cfm?id=26912
MikeX11.2 on Fri, 1st Jul 2016 12:33 pm
The Projected chart:
-Only Nat. Gas and Solar/Wind projected to grow.
-But with solar/wind getting cheaper every year, that’s wishful thinking. Nat. Gas ( fracking ) used to generate electric will be completely displaced by solar.
-Nat. Gas for heating will grow with population, but not at these rocket growth projections.
http://www.eia.gov/todayinenergy/images/2016.07.01/chart2.png
Rick Bronson on Fri, 1st Jul 2016 2:52 pm
From the peak, its 988,000 b/d down as 3/4 of the rigs were idled.
Now the media is speculating that if the oil prices rise above $50/barrel, the production will rise fast.
Lets wait and see.
Kenz300 on Fri, 1st Jul 2016 3:09 pm
How many producers have filed for bankruptcy………..
How many more will file in the next 6 months………..
If Iran increases shipments the price will drop again….
Boat on Fri, 1st Jul 2016 4:07 pm
Rick,
Now the media is speculating that if the oil prices rise above $50/barrel, the production will rise fast.
Alot of tight oil wells need prices closer to $70 make money. Were a long way from 70.
I have read Nigeria is in talks with their rebels. That could be a quick return of 400-700 bpd to the market if successful. Canada is still in the process of returning 1 mdpd.
I would think most tight oil producers will wait a few months to see how it shakes out.
Survivalist on Fri, 1st Jul 2016 9:28 pm
The recovery after the 2008 crisis was paid for with QE and deficit spending. That bolt is shot. Oil will float around $50 a barrel for a while but when it pushes $70 it’ll destroy demand. Debt can no longer be used to fuel growth. A fundamental feTure of peak oil is that there will still be oil in the ground but we won’t be able to afford it. That is what is coming now. When we pay less for oil then less oil will be produced. There will never again be $100 oil because demand will decrease before it gets there. Welcome to the new normal. Welcome to the downward spiral. There have been many clues for years. Near zero interest rates for years and years in western industrialized economies and still no growth that wasn’t paid for with debt. Growth is over. The contraction has begun.
Rick Bronson on Sat, 2nd Jul 2016 12:43 pm
Boat,
Apart from Canada, Iran, Nigeria producing extra oil, the demand for Oil will stay depressed if Electric and Natgas vehicle sales continue to rise gradually.
Boat on Sat, 2nd Jul 2016 1:56 pm
Rick,
Growth in electric and nat gas transportation is just beginning but should grow much faster in a few years. One example is China sold 300,000 electric cars in 2015 and project 600,000 for this year.
Not many agree but I think in 10-15 years the last peak oil will have occurred because of the growth in electric and nat gas transportation.