{"id":66520,"date":"2026-08-14T07:08:11","date_gmt":"2026-08-14T11:08:11","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/u-s-energy-output-set-for-record-highs-amid-rising-permian-production\/66520\/"},"modified":"2026-08-14T07:08:11","modified_gmt":"2026-08-14T11:08:11","slug":"u-s-energy-output-set-for-record-highs-amid-rising-permian-production","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/u-s-energy-output-set-for-record-highs-amid-rising-permian-production\/66520\/","title":{"rendered":"U.S. Energy Output Set for Record Highs Amid Rising Permian Production"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>U.S. oil production is forecast to reach 13.83 million barrels per day (bpd) in August 2026<\/strong>, a slight increase from July, with annual output on track to hit a record <strong>13.80 million bpd<\/strong> for the full year.<\/li>\n<li><strong>Natural gas production is projected to hit 122.6 billion cubic feet per day (Bcf\/d) in August<\/strong>, rising further to <strong>123.2 Bcf\/d in September<\/strong> as associated gas from the Permian Basin continues to drive supply.<\/li>\n<li><strong>Global Brent crude prices are expected to average $85 per barrel in Q3 2026<\/strong> due to inventory drawdowns and geopolitical constraints, before potentially softening to <strong>$69 per barrel in 2027<\/strong>.<\/li>\n<li><strong>Natural gas inventories are on track to reach a decade-high of 4 trillion cubic feet by October<\/strong>, providing a significant buffer for the upcoming winter heating season.<\/li>\n<\/ul>\n<p>The U.S. Energy Information Administration (EIA) released its August 2026 Short-Term Energy Outlook (STEO), signaling a period of robust domestic production growth. <strong>U.S. <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">crude oil<\/a> output<\/strong> is expected to average <strong>13.83 million bpd<\/strong> in August, slightly surpassing July&#39;s <strong>13.82 million bpd<\/strong>. While a minor dip to <strong>13.77 million bpd<\/strong> is anticipated in September, the broader trajectory remains upward, with 2027 production forecast to reach <strong>14.19 million bpd<\/strong>.<\/p>\n<p>The surge is largely attributed to efficiency gains and increased activity in the <strong>Permian Basin<\/strong>, where major operators like Exxon Mobil (<a href=\"\/stock\/XOM\">XOM<\/a>) and Chevron (<a href=\"\/stock\/CVX\">CVX<\/a>) have optimized drilling operations. <em>Market analysts note that the rising production plateau in the U.S. is a critical counter-narrative to OPEC+ supply cuts, effectively capping major price rallies.<\/em> Despite this domestic growth, the EIA revised its global demand forecast slightly downward, reflecting a cooling global economy.<\/p>\n<p>In the natural gas sector, the U.S. is cementing its position as a global leader, with production expected to average <strong>122.5 Bcf\/d<\/strong> for the full year 2026. This would eclipse the previous record of <strong>118.5 Bcf\/d<\/strong> set in 2025. The growth is heavily supported by <strong>associated gas<\/strong>\u2014gas produced as a byproduct of oil extraction\u2014particularly in West Texas and New Mexico.<\/p>\n<p>The outlook for natural gas remains strong despite short-term maintenance at key export facilities. <strong>Freeport LNG<\/strong> underwent maintenance in July and August, which temporarily reduced feedgas demand and helped boost domestic storage levels. <em>With inventories projected to hit their highest levels since 2016 by October, the U.S. is well-positioned to meet both domestic heating needs and rising export demand from Europe and Asia.<\/em><\/p>\n<p>Looking ahead, the EIA expects the <strong>Brent crude spot price<\/strong> to remain elevated near <strong>$85 per barrel<\/strong> through the third quarter of 2026. This price level is supported by continued disruptions in the <strong>Strait of Hormuz<\/strong>, which have constrained Middle Eastern shipments. However, as global inventories are expected to rebuild in early 2027, the agency forecasts a gradual decline in prices, offering potential relief for energy consumers in the long term.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways U.S. oil production is forecast to reach 13.83 million barrels per day (bpd) in August 2026, a slight 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