The largest rise in production is set to take place in the country largest production basin – the Permian basin. And that figure of 4.6 million bpd will be the highest since March 2020 – and very close to recovering to the pre-pandemic figure of 4.8 million bpd.
But taken as a whole, oil production in the United States is still 2 million bpd lower than the pre-pandemic 2020 level. The U.S. Department of Energy expects that by year-end the level will reach, on average, 11 million bpd.
Analysts say there is an investment shortfall that will leave the industry falling short of its previous highs of 13 million bpd. The forecast for 2022 is put at 11.79 million bpd.
The Department of Energy expects average world-wide demand for oil and liquid hydrocarbons in 2021 will amount to 97.7 million bpd – 5.4 million bpd higher than last year’s figure. In 2022, according to the DOE, demand will climb by 3.6 million bpd to 101.3 million bpd.
Experts are warning of insufficient investment in the oil industry the world over.
Saudi Oil Minister Prince Abdulaziz bin Salman could not rule out that the main reason behind a trend of rising prices was a shortfall in investment in geological exploration and a significant reduction in investment in drilling against the background of the pandemic.