EIA expects US fossil fuel production to increase
After declining in 2020, the combined production of fossil fuels in the United States (including natural gas, crude oil and coal) increased by 2% in 2021 to reach 77.14 quadrillion Btu.
Based on forecasts from the latest U.S. Energy Information Administration (EIA) reportShort term energy outlook‘ (STEO), US fossil fuel production is expected to continue to increase in 2022 and 2023, surpassing 2019 production, to reach a new record high in 2023.
Of total fossil fuel production in the United States in 2021, dry natural gas accounted for 46%, the largest share. Crude oil accounted for 30%, coal 15% and natural gas plant liquids (NGPL) 9%. The EIA expects these shares to remain similar through 2023.
U.S. dry natural gas production increased 2% in 2021, based on monthly data through October and estimates for November and December. The EIA forecasts that improvements in drilling efficiency and production from new wells will contribute to production increases of 3% in 2022 and 2% in 2023.
U.S. crude oil production fell slightly, by about 1%, in 2021, but the EIA expects it to increase by 6% in 2022 and 5% in 2023. The EIA projects that in 2022 and 2023, crude oil prices will remain high enough to encourage growth in the number of active rigs and continued improvement in drilling efficiency.
Coal production in the United States increased by about 7% in 2021, driven by increased demand for coal due to higher natural gas prices. Relatively low coal prices have made coal more economical for use in power generation compared to natural gas. In 2020, coal production in the United States had fallen to its lowest level since 1964. The EIA predicts that coal production will increase by 6% in 2022 as coal-fired electricity generators restore the levels of stocks. However, the EIA predicts that coal production will only increase by 1% in 2023 as demand for coal in the electric power sector declines.
U.S. NGPL production increased 4% in 2021. The EIA projects U.S. NGPL production to increase 9% in 2022 and then 4% in 2023. Since NGPL is a co-product of natural gas, The EIA’s forecast for increased NGPL production is tied to its forecast for increased natural gas production.
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/24012022/eia-expects-us-fossil-fuel-production-to-increase/