U.S. oil output from seven major shale formations is expected to climb by 26,000 barrels per day (bbl/d) in June to 7.73 million bbl/d, the first rise in three months, the U.S. Energy Information Administration said in a monthly forecast May 17.
The biggest increase is set to come from the Permian Basin, the top producing basin in the country, where output is expected to rise by 54,000 bbl/d to about 4.59 million bbl/d, the highest since March 2020.
Output in nearly every other large basin such as the Bakken in North Dakota and Montana as well as the Eagle Ford in South Texas is expected to decline. In the Bakken, production is expected to drop by about 7,000 bbl/d to 1.1 million bbl/d, the lowest since July 2020.
U.S. energy companies have boosted drilling activity as oil prices recovered this year, but activity outside the Permian has been limited as investors pressure firms to rein in spending and boost shareholder returns.
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