Crude oil energy production outlook in the U.S. 2021-2050
Crude oil production in the United States is expected to amount to 26.86 quadrillion British thermal units in 2050. Production is forecast to increase in the coming years but peak around 2028. One standard barrel of crude oil contains about 5.8 million British thermal units. It is expected that many governments will intensify searches for renewable alternatives to fossil fuel energy production, which will contribute to a decline in annual production.
Fracking is a means of extracting oil from permeable rock formations, such as shale or tight sandstone. This type of oil is referred to as tight oil or unconventional oil. In the U.S., most shale formations are located in Texas and North Dakota. Since the rapid expansion of fracking, these states have become two of the country’s largest producers of crude oil.
U.S. oil production gains in the past decade
With the highest consumption of oil in the world and no end to such levels in sight, the U.S. has been incentivized to produce more oil domestically. During the 2008 financial crisis, when benchmarks such as the OPEC oil price were particularly turbulent, investors seized upon lower interest rates as an opportunity to develop new methods of extracting shale gas and tight oil. Previously largely inaccessible, hydraulic fracturing (fracking) and horizontal drilling allowed for exploitation of more oil and gas plays than ever before.Fracking is a means of extracting oil from permeable rock formations, such as shale or tight sandstone. This type of oil is referred to as tight oil or unconventional oil. In the U.S., most shale formations are located in Texas and North Dakota. Since the rapid expansion of fracking, these states have become two of the country’s largest producers of crude oil.
