US oil production is set to drop by 5.06% over the next 10 years with the country’s output peaking at 7.22m bpd in 2010 before declining to 6.85m bpd in 2019, according to the latest US Oil & Gas Report from BMI.
The report assumes that oil consumption will ease by 0.30% and imports will rise from an estimated 11.66m bpd in 2010 to 11.96m bpd during the forecast period.
Gas production should ease from the estimated 2010 level of 552bn cubic metres (bcm) to a low of 540bcm in 2013, then rally to 570bcm by 2019. Demand is forecast to rise from an estimated 655bcm to 737bcm, requiring net imports to rise to a 2017 peak of 175bcm, in the form of pipeline volumes and liquefied natural gas (LNG).
The US is a deregulated, highly competitive and relatively mature energy market. There are numerous international and domestic companies operating at all levels, from exploration, through pipelines, refining and retailing. The market is dominated by US-based organisations, with Britain’s BP the biggest foreign investor, followed by Royal Dutch Shell.
