U . S . coal production fell by an estimated 24 % in 2020 , but according to EIA ’ s forecast , U . S . coal production will increase by 12 % in 2021 and another 4 % in 2022 . In recent years , about 90 % of U . S . coal has been consumed by the electric power sector . In EIA ’ s forecast , increases in natural gas prices are expected to reduce natural gas consumption for electricity generation , which will result in an increased share for coal — and to a lesser extent , an increased share for renewables such as wind and solar — in the electricity generation mix .
EIA estimates that U . S . NGPL production increased by 7 % in 2020 . Newly commissioned , more efficient natural gas processing plants supported growth in NGPL production even though natural gas production declined . EIA expects domestic NGPL production to increase by 2 % in 2021 and by 7 % in 2022 mostly because of ethane production growth . Principal contributor : Stacy MacIntyre ( See Figure 3 )
� OIL , NATURAL GAS PRODUCTION TO FALL IN 2021 , RISE IN 2022
In its January 2020 Short-Term Energy Outlook ( STEO ), the U . S . Energy Information Administration ( EIA ) forecasts that annual U . S . crude oil production will average 11.1 million b / d in 2021 , down 0.2 million b / d from 2020 as result of a decline in drilling activity related to low oil prices . A production decline in 2021 would mark the second consecutive year of production declines . Responses to the COVID-19 pandemic led to supply and demand disruptions . EIA expects crude oil production to increase in 2022 by 0.4 million b / d because of increased drilling as prices remain at or near $ 50 per barrel ( b ).
The United States set annual natural gas production records in 2018 and 2019 , largely because of increased drilling in shale and tight oil formations . The increase in production led to higher volumes of natural gas in storage and a decrease in natural gas prices . In 2020 , marketed natural gas production fell by 2 % from 2019 levels amid responses to COVID-19 . EIA estimates that annual U . S . marketed natural gas production will decline another 2 % to average 95.9 billion cubic feet per day ( Bcf / d ) in 2021 . The fall in production will reverse in 2022 , when EIA estimates that natural gas production will rise by 2 % to 97.6 Bcf / d .
EIA ’ s forecast for crude oil production is separated into three regions : the Lower 48 states excluding the Federal Gulf of Mexico ( GOM ) ( 81 % of 2019 crude oil production ), the GOM ( 15 %), and Alaska ( 4 %). EIA expects crude oil production in the U . S . Lower 48 states to decline through the first quarter of 2021 and then increase through
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