U.S. oil output is expected to continue to rise in February with production from shale rising by 111,000 barrels per day (bbl/d) to 6.55 million bbl/d, the U.S. Energy Information Administration (EIA) said Jan. 16.
The global oil market has been closely watching U.S. output, which may continue to contribute to global oversupply even as OPEC members, Russia and other producers curb production. The agency previously said that U.S. output could reach 10 million barrels a day in February and surge to 11 million in 2019.
The agency expects oil production from new wells to grow in each of seven major regions. The Permian Basin of Texas and New Mexico accounts for the bulk of the production increase year-on-year, the data showed. At the same time, production growth in the Bakken Formation of North Dakota is seen slower than a year earlier.
Eagle Ford oil output is expected to rise by 15,000 bbl/d to 1.27 million bbl/d, while Bakken output is set to rise by 8,500 bbl/d to 1.22 million bbl/d, the EIA said in a monthly report.
Permian production is forecast to rise by 76,000 bbl/d to 2.87 million bbl/d. The number of drilled uncompleted wells (DUCs) in the Permian is at a record 2,777, and the national number rose to a record 7,493 DUCs.
Meanwhile, U.S. natural gas production was projected to increase to a record 64.1 billion cubic feet per day (Bcf/d) in February. That would be up almost 0.9 Bcf/d from the January forecast and would be the 11th monthly increase in a row.
The EIA projected gas output would increase in all of the big shale basins in February, except the Anadarko Basin region in Oklahoma and North Texas, which is expected to decline for the first time in 13 months.
Output in the Appalachia region, the biggest shale gas play, was set to rise by almost 0.4 Bcf/d to a record high of 26.8 Bcf/d in February, an 11th consecutive increase. Production in Appalachia was 23.2 Bcf/d in the same month a year ago.
EIA said producers drilled 1,247 wells and completed 1,091 in the biggest shale basins in December, leaving total DUCs up 156 at a record high 7,493, according to data going back to December 2013.
Recommended Reading
Delek to Buy Permian's Gravity Water Midstream for $285MM
2024-12-13 - Delek Logistics' purchase of Permian-focused Gravity Water Midstream adds more than 200 miles of permanent pipeline and 46 saltwater disposal facilities.
Matador Consolidates Midstream Subsidiary, JV in $600MM Deal
2024-12-05 - Matador is merging its Delaware Basin Pronto Midstream subsidiary with its San Mateo Midstream joint venture with Five Point Energy to showcase assets an analytical firm called "underappreciated."
EIV Capital: Opportunities Abound for Investors in Midstream Sector
2024-11-01 - Here are the metrics that midstream financiers look for in a mature industry.
As Midstream Wobbles on IRA and ESG, a New Trend Opens Up for Sector
2024-10-08 - Enthusiasm for the Inflation Reduction Act (IRA) and ESG in the midstream sector is waning. Players are turning to a new trend—asset-backed securitization.
Midstreamers Say Need for More Permian NatGas Pipelines Inevitable
2024-11-26 - The Permian Basin’s associated gas output could outstrip the region’s planned capacity well before the end of the decade, pipeline company executives said.