Daily Management Review

US expects drop in oil production in large oil and gas regions


Oil production in major oil and gas producing regions of the USA, much of the production of which is shale oil, will decrease by 137,000 barrels per day, or 1.8%, to 7.438 million barrels in January 2021 compared to the current month, the Energy Information Administration (EIA) of the country's Energy Department predicts.

John Hill
John Hill
The biggest drop in production is expected in Permian field, by 44,000 bpd to 4.196 million bpd, and in Eagle Ford by 26,000 bpd to 987,000 bpd. Decrease in Bakken field is expected by 23 thousand, to 1.197 million barrels per day, exactly the same decrease is expected in Niobrara field, to 532 thousand barrels per day, and in Anadarko field - by 20 thousand, to 363 thousand barrels per day.

The smallest decline is forecast for Appalachia field - by 1 thousand bpd to 130 thousand bpd. EIA also expects production in Haynesville to remain unchanged, at 33kbpd.

The EIA also expects total gas production from all of these fields to decrease in January by 744 million cubic feet to 80.777 billion cubic feet.

Also, according to the EIA, the total number of unfinished wells in the fields of the largest oil and gas producing regions in the US fell by 144 in November compared to the previous month, to 7,330.

Drilled but uncompleted wells are wells drilled but not yet set up for production. A large reserve of these wells could allow US producers to ramp up production quickly and at scale when oil prices rise, regardless of the pace of drilling activity.

source: bloomerg.com