SIOUX FALLS, S.D. (KELO AM) - Crude oil production in the United States is on it's way to an all time high in 2018.
The government's top energy forecasting agency boosted its outlook for domestic production by an additional 200,000 barrels a day this year and next.
The Energy Information Administration expects domestic oil output to be at an average of 9.2 million barrels a day this year and increase to 9.7 million next year. That level would break the annual production record set back in 1970.
Domestic oil production is rising in response to higher oil prices from year-ago-levels and more rigs drilling for oil. However, a big build up in U.S. oil stockpiles depressed crude prices and shares in energy companies yesterday.
Meanwhile...this winter's above normal temperatures are cutting into U.S. natural gas demand. The EIA says temperatures in February were the warmest on record since 2009. Lower natural gas demand and above-average gas inventories are putting downward pressure on natural gas prices.
U.S. coal production is expected to increase this year after declining for two years in a row.
EIA says domestic coal production is expected to rise 4% this year reversing the 18% decline in coal output seen in 2016.
Growth in coal-fired electricity generation will contribute to the higher coal production. Electricity generation from coal-fired facilities is expected to increase slightly this year in response to higher natural gas prices and then fall slightly in 2018.
Natural gas-fired generation will still fuel the largest share of electricity generation this year and next.