Crude Oil Production
It is quite possible that crude oil production can be done technically from conventional crude oil reservoirs through primary, secondary and tertiary methods of well bore housing. The crude oil that is easily available and which can be easily extracted from the earth's surface is first obtained for crude oil production. In the beginning, the production wells, which were dug, were vertical after which horizontal wells came into existence. For faster extraction of crude oil, horizontal wells are ideal. The increase in crude oil prices leads to exploring oil in new areas and advanced methods of extracting crude oil but this is quite expensive and complex. Though crude oil is produced in the Unites States, it imports oil from major crude oil producing countries to meet the growing demand. 67 percent of crude oil was imported by the United States in January 2010 from Canada, Mexico, Saudi Arabia, Venezuela and Iraq.
After the global economic recovery, crude oil prices will remain the same or increase slightly in near future. The U.S Energy Information Administration (EIA) predicts that global crude oil consumption during 2010 will increase by 1.5 million barrels per day and 1.6 million barrels per day in 2011.OPEC crude oil production is projected to increase 0.3 million barrels per day especially in Angola and Nigeria. The average oil price of West Texas Intermediate or WTI is $81 per barrel in March 2010 and it has increased by an average of $5 per barrel when compared to last month. The U.S Energy Information Administration‘s forecast for West Texas Intermediate for 2011 is $85 per barrel.
In the United States, crude oil production for domestic consumption was 5.32 million barrels per day. For the current year, the production value is 200,000 barrels per day and in 2011 the domestic crude oil production in the United States will account to 70,000 barrels per day. It is believed that the production oil sands in Canada would reach 4 million barrels per day during 2020. The implementation of new techniques will increase crude oil production rates. Using new and advanced technology will make the extraction of oil faster. Injection technology will aid in increasing the pressure in the reservoirs. New oil wells are being discovered to meet the increasing demand for crude oil.
Iraq has a great potential for future crude oil production. Due to lack of petroleum legislation and terrorism, which prevails quite often in the country, investing in oil business has become doubtful and undependable. Although, the country has enough oil reserves there is always unrest and internal conflicts in the country, which curtail the economic growth. There is a possibility for crude oil production in Iraq to touch 8 million barrels per day by 2020 provided that satisfactory petroleum legislation is passed and peace prevails. Iraq believes that crude oil production will be around 2.7 million barrels per day in the year 2012. In 2009, Iraq's oil minister announced that the production output could be closer to 4 million barrels per day by 2014 and 7 million barrels per day by 2019.