The Energy Information Administration said increased drilling activity in west Texas’ Permian basin will boost… U.S. government forecasters anticipate U.S. oil production will fall more slowly than expected, led by a ramp-up in drilling in west Texas. The Energy Information Administration, in its monthly short-term energy outlook, boosted its forecasts of U.S. oil output this year and next. The EIA expects U.S. oil output to average 8.84 million barrels a day this year and 8.73 million barrels a day next year, up from its prior forecasts of 8.73 million in 2016 and 8.59 million in 2017. The higher production forecast comes from new data showing that U.S. oil output increased more than 50,000 barrels a day from July to August, to 8.744 million barrels. Previously, the EIA estimated production would decline in August. U.S. oil production has dropped from an average of 9.4 million barrels a day last year. […]