The U.S. Energy Information Administration announced crude oil production in the U.S. will increase at a faster rate than previously projected to reach near record levels in 2016 with 9.5 million barrels per day.
EIA forecasted U.S. oil output will jump 800,000 bpd each year through 2016, which will push oil production just short of the 9.6 million bpd record seen in 1970, according to EIA's Annual Energy Outlook for 2014. EIA attributes its raised forecast to hydraulic fracturing and horizontal drilling technologies that have been able to unlock oil from tight domestic shale plays.
"EIA's updated reference case shows that advanced technologies for crude oil and natural gas production are continuing to increase domestic supply and reshape the U.S. energy economy as well as expand the potential for U.S. natural gas exports," said EIA Administrator Adam Sieminski in a statement.
EIA also revised its natural gas forecast, increasing its projection to 31.9 trillion cubic feet by 2025, up from 28.7 tcf last year. Natural gas production is expected to grow 56 percent between 2012 and 2040 while oil production is expected to peak after 2016 and slowly decline after 2020, according to EIA estimates.