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March 4, 2024

U.S. oil production all set to break pre-pandemic record by 2023

By Priti Naik

Complicating Biden administration’s ambition to shift the country’s focus from fossil fuel, the US oil production is all set to break record of pre-pandemic by next year. The Energy Information Administration has forecasted that the oil production output is likely to rise in a fresh annual high of 12.4m barrels a day in 2023. This would break the pre-pandemic record of 12.3m barrel per day in 2019.

The US natural gas production marks a stark reversal for oil and gas industries that was sent into freefall by the pandemic-driven economic downturn. It challenges the widespread predictions on U.S. oil industry which would not recapture the peak production levels. The forecast comes as higher energy prices spark new investment in developing oil and gas fields.

The supply rebound comes even as many of the largest US oil and gas producers have shifted their focus from maximizing output growth to rewarding shareholders. Analysts have said that the next wave of production growth will be led by smaller producers. The EIA also predicts carbon emissions from the energy sector will continue to rise through 2023 after strongly rebounding in 2021 from a sharp fall during 2020.

Meanwhile, the Biden administration is pushing hard to green America’s energy system, channelizing billions of dollars into clean energy technologies and pushing the roll out of wind and solar power. The EIA forecast that US natural gas output would rise to a record 97.6bn cubic feet per day in 2023, from 93.5bn last year, which will help propel the US past Australia and Qatar to become the world’s largest exporter of liquefied natural gas.

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