Oil prices have rebounded to the highest levels in about two years, helped by restraint on supply by the Organization of the Petroleum Exporting Countries and allies.
The rise has prompted some U.S. producers to increase drilling activity, with rig counts rising for a 10th month in a row in May.
“Because prices of West Texas Intermediate crude oil remain above $60 per barrel during 2021 in the current forecast, we expect that producers will drill and complete enough wells to raise 2022 production from 2021 levels,” the EIA said.
In 2022, production is expected to average 11.8 million bpd, up from a forecast average of 11.1 million bpd in 2021.
The agency said it expects U.S. petroleum and other liquid fuel consumption to rise 1.49 million bpd to 19.61 million bpd in 2021, compared with a previous forecast for a rise of 1.39 million bpd.
U.S. gasoline consumption is expected to average 8.7 million bpd in 2021 and 9 million bpd in 2022.
Overall in 2022, U.S. demand is forecast to rise by 1 million bpd to 20.61 million bpd, compared to the EIA’s previous forecast for a rise of 1.02 million earlier.
Globally, consumption of petroleum and liquid fuels is expected to average 97.7 million bpd in 2021, a 5.4 million bpd increase from 2020. For 2022, the agency forecasts that global consumption of petroleum and liquid fuels will increase by 3.6 million bpd to average 101.3 million bpd.