EIA Raises U.S. Oil Production Forecast; International Operators Advance Projects

The U.S. Energy Information Administration (EIA) has raised its U.S. crude oil production forecast for 2026 and 2027, according to its latest Short-Term Energy Outlook published June 19. The updated federal forecast signals continued strong output from the nation's major producing regions, including North Dakota's Bakken formation.

In international regulatory and project news, Norway's Var Energi will proceed with its Balder Next project, Rigzone reported. The development, expected to begin production in 2027, is a tieback to the Jotun floating production, storage, and offloading (FPSO) vessel and will target 86 million barrels of oil equivalent in gross proven and probable reserves.

Separately, Spanish energy company Repsol has signed a new deal to widen its presence in Venezuela, Rigzone reported. The agreement, signed with Venezuela's Hydrocarbons Ministry and state-owned PdVSA, is to assess the potential development of a new area southeast of Lake Maracaibo, near the company's existing portfolio in the country.

For Bakken operators and royalty owners, the raised EIA forecast underscores the ongoing importance of the play in the national energy mix. While the specific forecast figures for the Bakken were not detailed in the summary, the formation is a key contributor to overall U.S. onshore production. The international project approvals highlight continued global investment in oil and gas development, which influences long-term market dynamics and commodity prices critical to the Williston Basin's economy.

The Balder Next project's 2027 production start date represents a medium-term addition to global supply. Repsol's renewed activity in Venezuela, a member of the OPEC producer group, could also factor into future supply considerations. These developments occur alongside domestic production expectations, which the EIA now views more optimistically for the next two years.