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U.S. oil production to increase further in 2022: Oil expert Dan Yergin

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According to Daniel Yergin (Vice Chairman of IHS Markit), U.S. oil production has returned and is expected to rise in 2022, after more than a decade of OPEC’s and its allies running the show.

According to him, output could grow by as high as 900,000. barrels per hour, CNBC. “Squawk Box Asia”On Wednesday

U.S. oil firms slashed production in 2020The coronavirus epidemic destroyed the demand, but supply hasn’t yet returned to pre-Covid levels. In 2019, the U.S. produced 12.29 million barrels of crude oil per day,The U.S. Energy Information Administration.

It was 10.28 million in 2020. The number is now 11.18 millions and 11.85 million respectively in 2021-2022.

Yergin stated that “The U.S. has returned.” “For the past year, year and a quarter, it has been OPEC+ that runs the show. But U.S. production will be returning already and more in 2022.”

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He said that he was on two calls when the U.S. energy secretary asked companies to increase production.

“This is due to the fact that the Biden administration so deeply concerned about inflation and its political effects,” he stated.

Yergin predicted that oil prices would remain in the $65-$85 range per barrel and that $100 oil was unlikely “unless there is a lot of geopolitical chaos.”

International benchmark Brent crude futures were up 0.49% at $79.62 on Thursday morning in Asia, while U.S. crude futures gained 0.47% to trade at $76.92.

Relations between the U.S. and Russia

Yergin also talked about the Jan. 10 security talks between U.S. and Russian officials.

Tensions at the Russia-Ukraine border have been high for weeks,The Russian troop buildup has alarmed the European Allies and the U.S.

U.S. President Joe BidenRussian President Vladimir PutinOn Dec. 7, spoke by video conference Putin asked that Ukraine be denied membership in the North Atlantic Treaty Organization — but the U.S. did not accept that demand.

Yergin stated that although there is no intention of NATO accepting Ukraine as a member, it’s possible.

“Ukraine’s not going to become part of NATO, but … you can’t have Vladimir Putin dictating that to you,” he added.

He said that the question now is “how to save face” for everyone.

Negotiations are going to be hard, but at least “they’re having conversations,” stated Yergin.

— CNBC’s Natasha Turak, Amanda Macias and Holly Ellyatt contributed to this report.

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