U.S. production of hydrocarbon gas liquids (HGL) – a group of products including ethane, propane, butanes and natural gasoline – is expected to increase from 3.86 MMbpd in 2015 to 4.33 MMbpd in 2017, according to EIA’s Short-Term Energy Outlook. HGLs are produced at both natural gas processing plants and petroleum refineries, but natural gas plants are expected to provide over 95% of the forecast production growth.
Despite lower crude oil prices, EIA expects Canadian oil production to continue increasing through 2017. Canadian oil sands projects that were already under construction when prices began to fall in 2014 and that are expected to begin production in the next two years are the main driver of production growth. According to EIA’s February Short-Term Energy Outlook, production of petroleum and other liquids in Canada, which totaled 4.5 million barrels per day (b/d) in 2015, is expected to average 4.6 million b/d in 2016 and 4.8 million b/d in 2017. This increase is driven by […]
The Short-Term Energy Outlook (STEO) released on Jan. 12, which is the first STEO to include projections for 2017, forecasts Brent crude oil prices will average $40 per barrel in 2016 and $50/bbl in 2017. West Texas Intermediate (WTI) crude oil prices are expected to be $2/bbl lower than Brent in 2016 and $3/bbl lower than Brent in 2017. EIA recognizes that there is still high uncertainty in the crude oil price outlook. For example, EIA’s forecast for the average WTI price in April 2016 is $37/bbl, while the market expects WTI prices to range from […]