December 12th, 2014 | U.S. Energy Information Administration | Richard Yan and Jozef Lieskovsky
The U.S. Energy Information Administration (EIA) is predicting oil production will continue to rise next year, despite the slide in oil prices. In 2015, the U.S. will produce 700,000 more barrels of oil every day over 2014 figures, if the EIA estimates hold true. That is a drop from earlier EIA projections of a rise of 900,000 barrels more per day in 2015.
The post brings up the most recent data from North Dakota’s oil fields as an example, which shows oil production climbing five percent in September from the previous month — after the biggest plunge in oil prices.
Though the expectation is that more oil will be pumped out of the ground, the EIA thinks the number of new wells drilled may still go down, as lower prices will make some areas less profitable to explore. Inside Energy’s Stephanie Joyce and Emily Guerin looked into what areas of North Dakota will be feeling the pinch from the oil price dive. That means companies will have to draw more oil from fewer, but richer, wells.
But, oil company stocks are still slipping from the price drop, and we found out that may affect your personal retirement investments.