U.S. Oil Output from Major Shale to Reach Nearly Two-Year Low in June — EIA
NEW YORK (Reuters) — U.S. crude production from seven major shale formations is expected to fall by a record 197,000 barrels per day in June to 7.822 million bpd, the U.S. Energy Information Administration said in a monthly report on Monday.
The output from shale formations would be the lowest since August 2018, according to data from the agency.
U.S. crude production from shale formations has more than doubled since 2013, lifting the country’s overall oil output to new record highs. Producers have throttled back production since March as prices have crashed due to oversupply and a sharp drop in demand due to the novel coronavirus outbreak.
In June, oil output from shale is expected to drop in each of seven major shale regions, with the largest drop of about 87,000 bpd in the Permian Basin of Texas and New Mexico. In the Permian, the largest producing shale region, production is expected to fall to about 4.29 million bpd.
Separately, EIA projected in its productivity report that U.S. natural gas output would decline for a seventh month in a row to 81.5 billion cubic feet per day (bcfd) in June.
That would be down almost 0.8 bcfd from the agency’s forecast for May. U.S. output from the big shale fields hit a monthly all-time high of 86.3 bcfd in November.
Output in the Appalachia region, the biggest U.S. shale gas formations, was also set to slip for a seventh month in a row in June to 32.6 bcfd, down about 0.1 bcfd from May.
The EIA said producers drilled 718 wells and completed 705 in the biggest shale basins in April. That left total drilled but uncompleted (DUC) wells up 13 to 7,617, their first increase in 11 months.
The number of wells drilled and completed were both at the lowest levels in a month since December 2016.
Related News
Related News
- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Valero Plans to Shut California Refinery, Takes $1.1 Billion Hit
- Three Killed, Two Injured in Accident at LNG Construction Site in Texas
- Tallgrass to Build New Permian-to-Rockies Pipeline, Targets 2028 Startup with 2.4 Bcf Capacity
- TC Energy Approves $900 Million Northwoods Pipeline Expansion for U.S. Midwest
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- Enbridge Adds Turboexpanders at Pipeline Sites to Power Data Centers in Canada, Pennsylvania
- Great Basin Gas Expansion Draws Strong Shipper Demand in Northern Nevada
- Cheniere Seeks FERC Approval to Expand Sabine Pass LNG Facility
- Heath Consultants Exits Locate Business to Expand Methane Leak Detection Portfolio
Comments