U.S. and Canada Set to Produce Record Oil Levels Through 2030: Report by Yolowire

The International Energy Agency (IEA) is predicting that oil producers in the U.S. and Canada will achieve record output levels by 2030. This surge in production is anticipated to lead to a significant global oil surplus by the end of the decade, according to the IEA’s latest energy market report.

The agency estimates that global oil demand will peak in 2029 and begin to decline in 2030. Non-OPEC countries, particularly the United States, are expected to drive production increases, with U.S. output forecasted to rise by 2.1 million barrels per day (bpd) above 2023 levels by 2030. Concurrently, Canada’s oil industry is projected to add 680,000 bpd over the next seven years.

Overall global oil production is expected to increase by 8.7% from 2024 to 2030, with U.S. production rising by 6.9% during the same timeframe. The IEA also highlights the significant impact of expanded export capacity in Canada, largely due to the recent upgrades to the Trans Mountain crude oil pipeline.

Additionally, a separate report from S&P Global Commodity Insights anticipates that Canada will produce 3.8 million bpd of crude oil by 2030, which marks a 15% increase from current levels. However, Canadian oil production may face restrictions in the coming years as the federal government in Ottawa plans to introduce legislation aimed at reducing emissions, which is a critical concern given that the oil and gas sector is the largest contributor to the country’s greenhouse gas emissions.

Currently, West Texas Intermediate (WTI) crude oil, the U.S. benchmark, is trading at approximately $77.83 per barrel, while the international benchmark is priced around $82.06 per barrel.