Daily Management Review

EIA: US will reduce oil production in major oil and gas regions by 0.7% in August


Oil production in the largest oil and gas producing regions of the USA, a significant part of which is shale oil, will decrease by 56 thousand barrels per day, or 0.7%, to 7.49 million barrels per day in August compared with July, the US Energy Information Administration expects.

Tim Evanson
Tim Evanson
The largest decline in production is expected at the Eagle Ford field - by 23 thousand, to 1.106 million barrels per day, on Anadarko and Niobrara - by 18 thousand, to 373 and 600 thousand barrels, respectively, and on Permian - by 13 thousand, up to 4.147 million barrels per day.

The smallest decline is expected for the Appalachia and Haynesville fields - only one thousand, to 115 and 36 thousand barrels, respectively. At the same time, the agency forecasts an increase in production at the Bakken field - by 18 thousand, to 1.113 million barrels per day.

The EIA also expects in August a total reduction in gas production in all of these fields by 712 million cubic feet, to 79.554 billion cubic feet per day.

Also, according to the EIA, the total number of unfinished wells in the fields of the largest oil and gas producing regions of the United States in June increased by 35 compared to the previous month, to 7,659.

Drilled but uncompleted wells (DUC) are drilled, but not yet equipped for production. A large DUC reserve can allow US producers to quickly and large-scale increase production with rising oil prices, regardless of the pace of drilling activity.

source: bloomberg.com