US Crude Output to Decline Through Mid-2030s Amid Low Oil Prices
The US Energy Information Administration (EIA) has predicted that US crude production will decline through the mid-2030s due to low global crude futures prices. The EIA's Annual Energy Outlook forecasts Brent crude futures trading below $70 per barrel through 2030, which would lead to a decrease in US crude output.
The Permian Basin is expected to account for most onshore oil production, with the US producing between 12.4 million and 12.7 million barrels per day of crude by 2050. However, domestic producers will face challenges as they run out of top-tier drilling locations, leading them to move into less economic areas.
Despite this, the EIA expects a slight increase in oil demand, with US oil demand averaging 20.5 million barrels per day in 2027. Global natural gas demand is also expected to rise, driving dry US natural gas production up by 2050.