U.S. shale oil production is expected to fall by more than 600,000 barrels per day (bbl/d) in January from the March peak, according to a U.S. government forecast on Dec. 7.
Total output is set to decline by just over 115,000 bbl/d to 4.86 MMbbl/d in January compared with December, according to the U.S. Energy Information Administration's (EIA) drilling productivity report.
Bakken production from North Dakota is set to fall 27,000 bbl/d, while production from the Eagle Ford is expected to fall 77,000 bbl/d. In the Permian Basin in West Texas, production is forecasted to rise by 14,000 bbl/d, data show.
Meanwhile, U.S. natural gas production was expected to fall for a sixth month in a row in January.
Total output was set to decline almost 0.4 billion cubic feet per day (Bcf/d), the biggest monthly decline since March 2013, to 44 Bcf/d in January 2016, the lowest level since January 2015, according to the EIA data.
The biggest decline was expected to be in the Marcellus region in Pennsylvania and West Virginia, down 0.2 Bcf/d to a forecast 15.5 Bcf/d in January 2016.
That would be the second monthly year-on-year decline in the Marcellus region, the nation's biggest shale gas play, since at least 2008, around the time of the start of the shale boom. The first monthly year-on-year decline was expected to be in December.
Recommended Reading
Texas LNG Export Plant Signs Additional Offtake Deal With EQT
2024-04-23 - Glenfarne Group LLC's proposed Texas LNG export plant in Brownsville has signed an additional tolling agreement with EQT Corp. to provide natural gas liquefaction services of an additional 1.5 mtpa over 20 years.
US Refiners to Face Tighter Heavy Spreads this Summer TPH
2024-04-22 - Tudor, Pickering, Holt and Co. (TPH) expects fairly tight heavy crude discounts in the U.S. this summer and beyond owing to lower imports of Canadian, Mexican and Venezuelan crudes.
What's Affecting Oil Prices This Week? (April 22, 2024)
2024-04-22 - Stratas Advisors predict that despite geopolitical tensions, the oil supply will not be disrupted, even with the U.S. House of Representatives inserting sanctions on Iran’s oil exports.
Association: Monthly Texas Upstream Jobs Show Most Growth in Decade
2024-04-22 - Since the COVID-19 pandemic, the oil and gas industry has added 39,500 upstream jobs in Texas, with take home pay averaging $124,000 in 2023.
What's Affecting Oil Prices This Week? (Feb. 5, 2024)
2024-02-05 - Stratas Advisors says the U.S.’ response (so far) to the recent attack on U.S. troops has been measured without direct confrontation of Iran, which reduces the possibility of oil flows being disrupted.