US oil production posts largest increase in over a century
Last year US oil production posted its largest volume increase since record keeping began over a century ago.
The Energy Information Administration (EIA) said it increased to1.2m barrels per day last year, pumping out a total 8.7m barrels per day. This was the largest volume increase since record-keeping began over a century ago.
"Most of the increase during 2014 came from tight oil plays in North Dakota, Texas, and New Mexico where hydraulic fracturing and horizontal drilling were used to produce oil from shale formations," the EIA said.
The US shale gas industry, as well as waning demand from emerging economies such as China, helped drive oil prices as low as $45 dollars per barrel in January. This was down from a peak of about $106 per barrel in June.
(Source: IEA)
But while the IEA expects oil production to rise in 2015 and 2016, the growth won't be better than that of 2014.
Oil production increased by 16.2 per cent last year, the highest growth rate since 1940. The IEA expects annual crude oil production grow at around 8.1 per cent this year and 1.5 per cent next year according to its latest Short-Term Energy Outlook (STEO).
(Source: IEA)