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45-Year High U.S. Oil Output May Cut Pump Price, Imports

Posted September 10, 2014

Under Economic Issues

(Bloomberg – Mark Shenk)

U.S. crude production will surge to a 45-year high next year, lowering prices and reducing the need for imports, government forecasters said yesterday.

The U.S. Energy Information Administration raised its estimate of 2015 output by 250,000 barrels a day to 9.53 million, the most since 1970, Adam Sieminski, the administrator of the EIA, said in a statement yesterday. The agency forecast output of 8.53 million barrels a day this year, up from 7.45 million in 2013.

“U.S. production levels are astounding,” Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis, which oversees $2.6 billion, said by phone yesterday. ‘We will see further revisions, because these technologies get better over time.’’ Read more here.