US crude oil, natural gas production to continue growing

Recent growth in US crude oil and natural gas production is expected to continue for many years, a report showed here Monday. The US Energy Information Administration (EIA) Annual Energy Outlook 2014 Reference case showed that in 2016, crude oil production is expected to be close to the historical high of 9.6 million barrels per day, a record set in 1970. It added that while domestic crude oil production is projected to level off and then slowly decline after 2020, natural gas production grows steadily, with a 56 percent increase between 2012 and 2040, when production reaches 37.6 trillion cubic feet. According to the report, industrial shipments are expected to grow at three percent per year over the first 10 years of the projection and then slow to 1. 6 percent annual growth through 2040. It showed that US exports of natural gas will also increase to 3.5 trillion cubic feet before 2030 and remain at that level through 2040. Meanwhile, the Federal Reserve showed in a report today that US industrial production increased 1.1 percent in November after having edged up 0.1 percent in October. The gain in November was the largest since November 2012, when production rose 1.3 percent. Manufacturing output increased 0.6 percent in November for its fourth consecutive monthly gain, whereas the index for utilities was up 3.9 percent in November, as colder-than-average temperatures boosted demand for heating. At 101.3 percent of its 2007 average, total industrial production was 3.2 percent above its year-earlier level. In November, industrial production surpassed for the first time its pre-recession peak of December 2007 and was 21 percent above its trough of June 2009. Capacity utilization for the industrial sector increased 0.8 percentage point in November to 79.0 percent, according to the report.