The US Energy Information Administration (EIA) on Tuesday said that the US would produce an average of 11.26 million bpd of crude oil in 2020, a fall of 990,000 bpd from last year, which is deeper than a 600,000 bpd decline it previously forecast last month. The agency also projects US petroleum and other liquid fuel demand to fall 2 million bpd to 18.46 million bpd this year, compared to a 2.12 million bpd drop in its previous projection.
The COVID-19 pandemic pushed oil prices to all-time lows earlier this year, but worldwide consumption, particularly in Asia, has begun to recover as some countries relax their virus containment measures. EIA said global petroleum and liquid fuels consumption was down 9.1 million bpd year-on-year to an average of 93.4 million bpd in July but improved from 85 million bpd during the second quarter.
The price collapse also forced US oil producers to curb production and slow down new drilling activity. EIA said US oil output curbs were more extensive than estimated which is why it revised its production outlook for this year.
For 2021, US oil production is estimated to fall by 120,000 bpd to 11.14 million bpd, compared to a 620,000 bpd decline EIA previously forecast. US oil consumption is projected to reach 20.03 million bpd next year, an increase of 1.57 million bpd from this year, a slightly smaller increase than 1.6 million bpd the agency projected last month.
