US oil production set to hit record in 2027 as midstream firms prepare for growth amid disciplined spending.

Despite higher crude prices, major US oil producers are maintaining capital discipline and only marginally increasing output, while smaller private firms are adding rigs. The US Energy Information Administration forecasts record oil production in 2027, with a 428 thousand barrels per day increase over 2026 levels. This growth, combined with easing natural gas bottlenecks, supports a positive outlook for midstream infrastructure companies, which benefit from rising energy production and demand. Investors remain cautious about spending increases, but the improved energy outlook is boosting midstream sector returns and dividend prospects.