Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Fracking to drive US oil production to record high

Fracking to drive US oil production to record high

US oil production is to approach a record high within three years, powered by fracking, according to the Energy Information Association (EIA).

In its latest annual outlook report, the EIA said it expects US output to hit 9.5 million barrels a day in 2016, marginally below the previous high of 9.6m b/d seen in 1970 and almost double the low of 5m b/d seen in the trough that occurred at the height of the financial crisis in 2008.

'Ongoing improvements in advanced technologies for crude oil and natural gas production continue to lift supply domestic supply and reshape the US energy economy,' the EIA said.

The organisation expects oil output to start falling in 2020 as the impact of fracking wanes, but predicts that natural gas production will continue to grow, rising by 56% between 2012 and 2040.

Fracking, which remains a controversial extraction procedure, has helped drive US production up to a 25 year high and the extent of its impact caught out even the EIA, which last year predicted that output growth would rise by 7.5m b/d before this week's upgrade.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: what's behind the second oil crash?

Brewin's Gutteridge: what's behind the second oil crash?

This week Brewin Dolphin's research head talks to Will Riley, co-manager of the Guinness Global Energy fund, about what next for oil.  

Play AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Richard Bullas has quietly been making a name for himself at the helm of the Franklin UK Smaller Companies fund.

Play Sector spotlight: how Harwood's Philbin is playing emerging markets

Sector spotlight: how Harwood's Philbin is playing emerging markets

Emerging markets have been a rollercoaster for investors, but amid the doom there have been have been bright spots, such as India. 

Your Business: Cover Star Club

Profile: CHI's bond supremo on liquidity and bond risk management

Profile: CHI's bond supremo on liquidity and bond risk management

'Some people have been extremely complacent about rate rise risk. Myself, I wish they would just get on with it.'

Wealth Manager on Twitter