The EIA’s June Short Term Energy Outlook (STEO), released this week, shows US output rising strongly. But output for last month is revised down. Whilst May output of 9.208mn b/d is up by a bumper 106,000 b/d on April, this is partly because the latter has been revised down by 40,000 b/d.
Strong output growth is still projected for the remainder of 2017 and beyond. The EIA, taking into account the recent surge in investment and drilling (MEES, 9 June), has hiked its output forecasts for the second half of 2017 and first half of 2018 by an average of 100,000 b/d. Output is slated to top the April 2015 peak of 9.63mn b/d in November and hit 10mn b/d in March 2018, a level only ever before topped briefly in 1970 (see chart, MEES, 9 June). (CONTINUED - 1389 WORDS)
