Submitted by: Trader J Howell

United States energy department on its forecast, said that crude oil production in US is expected to rise to a life time high in the year of 2013. The administrators of energy information have also said on their review on Tuesday that, this rate will rise quarter on quarter in between 2013 to 2014.

With the statistical data of EIA, the information administrators of US energy are claiming that the production of crude oil will grow up to 900,000 barrels per day in the year of 2013, where in 2012, it was recorded at the rate of 7.3 million barrels per day. The forecast is showing a graph of 300,000 barrels per day increasing from the rates which were recorded in December, 2012.

This rapid increase is going to be achieved by the improvements of technology in US energy industries. In last five years, they are applying the most updated technology called fracking or to be certain horizontal drilling & hydraulic fracturing technology. This technology has allowed the producers to transform, “tight rock” formations in to tap shale oil.

The success of this new technology application is about to bring a revolution in the market of US Energy Department. EIA estimates that the whole achievement will be able to experience in the market from the year of 2014. All these estimates are just bolstering the claim which was out in the beginning of 2010 that, by the end of this decade, US energy sector will be completely independent.

The market analysts are saying that is all these projections of US energy department come to the nearer points of accuracy, the production of US crude oil will raise to 40% in between 2011 to 2014. The rate is almost 50% higher than what was recorded in the beginning of this decade.

Administrator of the EIA, Adam Sieminski, said that- as output in North Dakota’s Bakken formation and Texas’s Eagle Ford fields has risen sharply over the past 12 months, U.S. producers were becoming even more prolific. The learning curve in the Bakken and Eagle Ford fields, which is where the biggest part of this increase is coming from, has been pretty steep, the long-term outlook beyond 2020 suggested production from shale fields in the United States may plateau it was possible analysts were still underestimating the potential of U.S. shale oil output in the short-term.

With the rise of production, there is also news that the price of oil is going to be up in 2013. West Texas Company of intermediate oil will keep its price on $89.54 per barrel, from the price of $88.38 in 2012. The Company that represents the benchmark grade of almost half of the world is going to provide a barrel on the rate of $105.17 for Brent Oil in the year of 2013.

Brent Oil, too, is going to hit highs in the next fiscal year, most of the analysts say. Average cost of imported & domestic grades that are being used by US refiners is going to rise almost 1.2%.

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