EIA excited over so-called tight oil

WASHINGTON, Feb. 9 (UPI) -- Oil reserves in the Gulf of Mexico will remain a key component of U.S. domestic energy production though so-called tight oil is making gains, the EIA said.

The U.S. Energy Information Administration said it expected U.S. crude oil production would stay at more than 6 million barrels per day through 2035 despite a predicted decline in overall production after 2020.

In its annual report, the EIA said "continued development of deep-water crude oil resources in the Gulf of Mexico will become an increasingly important component of domestic crude production."

The White House said it was opening parts of the Gulf of Mexico to energy development, though critics accuse President Barack Obama creating roadblocks to domestic energy production.

The EIA said drilling in the Gulf of Mexico was "moderated by a slower permitting process with increased environmental review."

Case studies outlined in the annual review project onshore oil development will reach the 1.3 million barrel per day mark by 2030. That trend is expected to continue as new technology comes online for so-called tight oil -- light crude in shale formations.

Overall, the EIA projects U.S. domestic crude oil production will reach 6.7 million bpd by 2020, an increase from the 2010 level of 5.5 million bpd.