Feds much watched Short-Term Energy Outlook shows crude oil production to hit record levels '24, '25

The Energy Department projects U.S. crude oil production to reach record levels of 13.2 million barrels a day in 2024, then increase to 13.4 million barrels per day in 2025.

The projection was made Tuesday by the department's U.S. Energy Information Administration in its closely watched Short-Term Energy Outlook.

The administration pointed out that oil-production growth will slow over roughly the next two years because of fewer active drilling rigs but overall production will continue to increase as a result of well efficiency. 

Solar Power, according to the EIA, will lead growth in electricity generation in 2024 and 2025. Coal will decline by 9% this year and by 10% in 2025. The administartion doesn’t expect any changes in electricity generation from natural gas. Overall, U.S. electricity generation will grow by 3% in 2024 and then stagnate in 2025.

Gasoline prices, according to the outlook, will fall from an average of $3.50 per gallon in 2023, to $3.40 per gallon in 2024. They will then fall to $3.20 in 2025.