The EIA expects U.S. total crude oil production to average 6.3 million barrels per day in 2012, an increase of 700,000 barrels from last year. In 2013, U.S. domestic crude oil production is projected to reach 6.9 million barrels a day, the highest point since 1993.
U.S. output is rising from drilling in the North Dakota Bakken shale formation and in the Permian Basin and Eagle Ford areas in Texas.
Crude oil prices are projected to decline as production increases. Brent oil will average $111 a barrel in the fourth quarter of 2012 and fall to $103 a barrel in 2013, EIA said.
The EIA also projects that gasoline will cost $3.65 per gallon on average in 2012 and fall to $3.44 per gallon in 2013.
Natural gas inventories at the end of September were 3.7 trillion cubic feet, or 8 percent more than at the same time last year, according to EIA.
The agency, which is a division of the U.S. Energy Department, said Henry Hub spot prices will average $2.71 per million British thermal units in 2012 and rise to $3.35 per million Btu in 2013. Henry Hub in Erath, Louisiana, is a benchmark for the fuel.
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