US Could Produce Up To 16 Million Barrels Of Oil Daily In Future - Energy Chief

The United States, already the world's largest oil producer with a record high of 13 million barrels per day, could turn out as much as 15-to-16 million barrels daily in coming years to keep oil prices stable, US Energy Secretary Dan Brouillette said on Friday.

WASHINGTON (UrduPoint News / Sputnik - 08th February, 2020) The United States, already the world's largest oil producer with a record high of 13 million barrels per day, could turn out as much as 15-to-16 million barrels daily in coming years to keep oil prices stable, US Energy Secretary Dan Brouillette said on Friday.

"We're able to produce 13 million barrels per day here in the United States and some estimates I've seen informally go as high as 15 to 16 million barrels per day," Brouillette said in a speech at the Atlantic Council, a Washington-based think-tank. "That extra capacity, that strength, if you will, will keep oil prices stable for the foreseeable future."

The United States became the world's largest oil producer in 2018, surpassing both Saudi Arabia and Russia, which for years rotated as the top two producers of the commodity.

The US government's Energy Information Administration (EIA) said in a January forecast that it expected the country's oil production to average 13.3 million barrels per day in 2020 and 13.7 million in 2021.

"More production from the Lower 48 states' onshore regions, especially the Permian region, drives the forecast increase," the EIA said.

The higher estimates given by Brouillette come amid difficult market conditions for oil faced by global producers due to concerns of oversupply.

Russia said on Friday it needed more time to decide whether to join more stringent output cuts proposed by Saudi Arabia and the Organization of the Petroleum Exporting Countries, amid a slump in oil prices triggered by the coronavirus crisis in top energy consuming country China.

Brouillette disagreed with suggestions that additional output by the United States in the future would dramatically lead to market imbalance in oil.

"It is a fundamentally different world now and you've seen the effect of increased production on pricing," he said. "Now, some will argue that demand is going down. Global demand for energy is actually going up. Global economic activity may be slowing, growth may be slowing, but it's still growing. It's not in a decline. Those two things combined lead to a bright future in energy production. It also adds to stability in oil prices."

The World Bank has forecast a global growth of 2.5 percent in 2020, while the EIA says world oil consumption will rise by 1.3 million barrels per day.