North American oil and gas production will continue to grow over the next two decades, at an average annual rate of 1.8 percent, a new report by consultancy firm ICF International reveals.
The report presents a detailed outlook for oil and gas production in the United States and Canada, including predictions for natural gas, natural gas liquids (NGL) and oil production through 2035. Apart from specific figures regarding production, the report also outlines key trends that will play a role in shaping the North American oil and gas market. For example, gas production growth is expected to slow down following the subdued gas drilling activity over the past two years. While offshore gas production at the Gulf of Mexico dropped in 2013, production from deepwater is expected to recover.
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By contrast, NGL production is projected to keep growing at a robust rate over the years to come. The average production of just over 600,000 barrels per day over the past five years is expected to double by the end of the period, ICF International said. Similarly, oil production from unconventional plays is set to increase, particularly at the Bakken, Cline, Niobrara and Eagle Ford formations. Meanwhile, Canadian bitumen production has the potential to develop significantly but delays in a series of crude transportation projects could prevent capacity expansion.