Oil production in the United States will fall next year to its lowest level since 1992, predicts the International Energy Agency. Why? There is a huge surplus of oil, and prices are too low to justify drilling. Some of the oil now being removed from the ground costs more to produce than the $45 or so per barrel producers are getting now. “After expanding by a record 1.7 million barrels a day in 2014, the latest price rout could stop U.S. growth in its tracks,” the agency reported. It’s predicted that U.S. output of shale oil will fall by almost 400,000 barrels per day in 2016.
For more on this story, click AllGov.com U.S. Oil Production Braces for Sharpest Drop in 24 Years.