Oil output in the Permian Basin in Texas and New Mexico, the biggest U.S. shale oil basin, is due to rise 88,000 bbl/d to a record 5.219 million bbl/d in June, the U.S. Energy Information Administration (EIA) said in its productivity report on May 16.

Total output in the major U.S. shale oil basins will rise 142,000 bbl/d to 8.761 million bbl/d in June, the most since March 2020, the EIA projected.

In the Bakken in North Dakota and Montana, EIA projected oil output will rise 17,000 bbl/d to 1.189 million bbl/d in June, the most since December 2020.

In the Eagle Ford in South Texas, output will rise 27,000 bbl/d to 1.176 million bbl/d in June, its highest since April 2020.

Total natural gas output in the big shale basins will increase 0.8 Bcf/d to a record 91.8 Bcf/d in June, the EIA forecast.

In the biggest shale gas basin, output in Appalachia in Pennsylvania, Ohio and West Virginia will rise to 35.7 Bcf/d in June, its highest since hitting a record 36 Bcf/d in December 2021.

Gas output in the Permian Basin and the Haynesville in Texas, Louisiana and Arkansas will rise to record highs of 20 Bcf/d and 15.1 Bcf/d in June, respectively.

But productivity in the biggest oil and gas basins has declined every month since setting records of new oil well production per rig of 1,544 bbl/d in December 2020 in the Permian Basin, and new gas well production per rig of 33.3 MMcf/d in March 2021 in Appalachia. By Stephanie Kelly and Scott DiSavino, Reuters

Read More…