The US Energy Information Administration (EIA) forecasts the country's oil production will peak at 14 million barrels per day (bpd) by 2027. Projecting future trends, the organization's experts suggest a further decline in oil output by 2050.
Exhaustion of the shale industry's potential will be the main reason for the decline. Analysts believe that it will peak at 10 million bpd in 2027 before dropping to 9.33 million bpd by 2050. Moreover, production growth in the Permian Basin, which accounts for almost half of total production in the country, has already slowed significantly compared to the highest levels of 2018–2019.
At the CERAWeek conference, CEO of Occidental Petroleum Vicki Hollub stressed that the country's production capacity is about to reach its limits and that the water-to-oil ratio is increasing. Meanwhile, the US Department of Energy links the drop in production growth to the Biden administration's policies.