US oil output on track for 45-year high

US oil output on track for 45-year high
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The United States is on track to see its most productive year for crude oil in 45 years.

The Energy Information Administration (EIA) forecast Tuesday that production will average 9.5 million barrels per day by the end of the year, after seeing 9.6 million barrels a day in the first half.


That would be the highest annual production since 1970, which saw 9.6 million barrels a day, making it the most productive year ever for the United States.

Despite that, the EIA predicted in its monthly energy forecast that oil production will fall in the second half of the year and into the early months of 2016.

“The forecast decline in U.S. monthly oil production through early 2016 is the result of low oil prices, which pushed oil companies to reduce their investment in drilling that resulted in the lowest number of rigs drilling for oil in nearly five years,” EIA Administrator Adam Sieminski said in a statement with the report.

Last year saw 8.7 million barrels of oil produced each day on average.

Among other findings, the EIA predicted that record road travel will lead to gasoline demand topping 9 million barrels a day this year for the first time since 2007.

“Low gasoline prices and higher employment will contribute to more driving this year, boosting U.S. gasoline consumption an estimated 170,000 barrels per day higher than in 2014,” Sieminski said.