In The News
EIA lowers oil production estimates as price of oil falls again
The U.S. Energy Information Administration cut its oil production estimate Monday, decreasing its estimate by 100,000 barrels a day in June from its revised May 2015 prediction.
For the first five months of the year EIA lowered its production estimates by between 40,000 and 130,000 barrels a day each month.
The largest revisions in volume include decreases of oil production in Texas (ranging from about 100,000 barrels a day to 150,000) and increases in the federal Gulf of Mexico (ranging from about 10,000 barrels a day to 50,000). U.S. crude oil production for the first six months of 2015 averaged 9.4 million barrels a day.
Investors and analysts have been surprised this year that domestic oil output, particularly from shale oil fields, have remained strong despite last year's plunge in oil prices led to a decrease in new drilling expenditures.
The EIA said its revisions come as the result in new survey methodology.
Brent crude oil fell back below $49 a barrel this morning after its biggest two-day rally in six years last week.
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