Bank Of America: US Will Show Incredible Oil Output Growth In Next 5 Years

Bank Of America: US Will Show Incredible Oil Output Growth In Next 5 Years

Shale oil producing companies in the United States will have a major share of the oil market until 2022.

Report informs citing the Forexpf.ru, it is said in forecast report of the US Bank of America Merrill Lynch.

According to forecast, from fourth quarter of 2016 until the last quarter of 2017, daily shale oil production in the US will increase up to 600,000 barrels per day. The reasons are increased activity in drilling operations and enhanced productivity factors.According to the bank’s forecasts in the long-term assuming oil prices in the range of 60-70 USD/ barrel, in 2017-2020 years the average annual growth in shale oil production in US will reach 700 thousand barrels per day.

Apart from the United States, Brazil, Russia, Kazakhstan and Canada are also expected to increase oil production in next 5 years. The reason is the production in “Lula”, “Kashagan” and “Sverdrup” fields. Oil production in non OPEC countries to reach 61.7 mln barrels/day in next 5 years. This means an average increase of 830 thousand barrels a year. In other words, in next 5 years 84% of the increase in oil production will be accounted for shale oil.

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