US crude output to fall one million barrels per day in 2016 from 2015 peak: EIA

US crude oil production in 2016 will fall by nearly 1 million barrels per day from its 2015 highs, the US government said on Wednesday, in a sign the slump in global prices is weighing more deeply and for longer than expected on the country's shale boom.
US production, which hit a peak in April at 9.61 million bpd, is set to fall to a low of 8.63 million bpd in August next year, according to data released from the US Energy Information Administration's short term energy outlook. That is a wider gap from last month's forecast by 60,000 bpd. A few months ago, the EIA said production was expected to begin declining from June through the early part of 2016 before resuming growth.
"Current low oil prices are making some US oil production less profitable, with total estimated oil output during August alone down 140,000 barrels per day from the month before," EIA Administrator Adam Sieminski said in a statement. Since last summer, a 60-percent cut in benchmark prices has forced producers to cut budgets and lay off thousands of staff. On Tuesday, Continental Resources cut its 2015 budget for at least the third time.
Though crude production is set to fall next year, the EIA left unchanged its outlook for a decline in 2016 while lowering its 2015 growth forecast. The EIA said production in 2016 would fall by 400,000 barrels per day (bpd) to 8.82 million bpd. Last month, it said production would also fall 400,000 bpd, but the outright production figure was higher at 8.96 million bpd. The 2015 crude oil output forecast was lowered to 500,000 bpd of growth, from 650,000 bpd of growth previously. Meanwhile, the 2016 US oil demand growth forecast was lowered to 130,000 bpd from 190,000 bpd growth previously. The 2015 US oil demand growth was set to rise by 330,000 bpd from 400,000 bpd previously.