US oil production back in positive territory
The decline in U.S. oil production during the two-year bust is over, according to a U.S. Department of Energy outlook report released Tuesday.I suspect that US oil production will grow more than the projected amount if the price remains stable or increases. It is no longer a question of finding it. The main issue is whether it is profitable to pump it out of the ground.
U.S. Energy Information Administrator Adam Sieminski noted that American oil production increased in the last three months of the year, marking the first quarterly increase since early 2015 when the two-year oil bust was just beginning to sink in.
• Natural gas surpassed coal as the primary source of electrical power for the first time ever in 2016, but coal is expected to make a bit of a comeback in 2017 and could retake its leadership position.
• U.S. oil production averaged 8.9 million barrels per day in 2016 and that amount is expected to grow to 9 million daily in 2017 to to 9.3 million barrels a day in 2018.