07032020Fri
Last updateFri, 03 Jul 2020 5pm

EIA Revises Down U.S. Oil Production Forecast for 2020

The U.S. Energy Information Administration (EIA) estimates U.S. crude oil production fell from a record 12.9 million barrels a day (b/d) in November 2019 to 11.4 million b/d in May 2020 as Baker Hughes reported the fewest active drilling wells in the U.S. in their records which go back to 1987. EIA expects U.S. crude oil production will continue to decline, to 10.6 million b/d in March 2021, then increase slightly through the end of 2021. EIA forecasts that U.S. crude oil production will average 11.6 million b/d in 2020, down 670,000 b/d from 2019. In 2021, EIA expects U.S. crude oil production will average 10.8 million b/d.


Canada is Largest Source of U.S. Energy Imports

Canada is the largest source of U.S. energy imports and the second-largest destination for U.S. energy exports behind only Mexico. Energy is an important component of trade between Canada and the U.S. In 2019, based on the latest annual Standard International Trade Classification (SITC) data from the U.S. Census Bureau, energy accounted for $85 billion, or 27%, of the value of all U.S. imports from Canada. Crude oil and petroleum products accounted for 91% of the value of U.S. energy imports from Canada and 89% of the value of U.S. energy exports to Canada.

The U.S. exported $23 billion worth of crude oil, petroleum products, natural gas, and electricity to Canada in 2019, about 8% of the value of all U.S. exports to Canada and the second-highest level recorded after peaking in 2014.

Dept. of Energy Building New Advanced Nuclear Reactors

The U.S. Department of Energy (DOE) announced the launch of the Advanced Reactor Demonstration Program (ARDP) within the Office of Nuclear Energy (NE). ARDP is designed to help domestic private industry demonstrate advanced nuclear reactors in the U.S.

For the Fiscal Year 2020 budget, Congress appropriated $230 million to start a new demonstration program for advanced reactors. Through cost-shared partnerships with industry, ARDP will provide $160 million for initial funding to build two reactors that can be operational within the next 5 to 7 years.

U.S. Renewable Energy Consumption Surpasses Coal

In 2019, U.S. annual energy consumption from renewable sources exceeded coal consumption for the first time since before 1885, according to the U.S. Energy Information Administration’s Monthly Energy Review. This outcome mainly reflects the continued decline in the amount of coal used for electricity generation over the past decade as well as growth in renewable energy, mostly from wind and solar. Compared with 2018, coal consumption in the U.S. decreased nearly 15%, and total renewable energy consumption grew by 1%.

U.S. Chemical Production Edged Lower in April

According to the American Chemistry Council, the U.S. Chemical Production Regional Index dropped 3.1% in April following a 1.0% decline in March and a 0.4% decline in February. During April, chemical output fell across all regions, with the steepest decline in the Gulf Coast region. The lower level of chemical activity is directly related to supply chain disruptions and the lockdown of much of the U.S. economy during April. Production fell across all chemical segments. Within several major segments, however, production of some chemical materials increased, including supply chains tied to personal protective equipment and disinfection products.

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