Oil and gas production from major U.S. shale plays is expected to rise in October, largely driven by an anticipated increase in Permian Basin output, according to the latest forecast by the Energy Information Administration (EIA).
For the seven key shale regions included in the EIA’s monthly Drilling Productivity Report, the government agency is forecasting oil output will rise 66,000 bbl/d sequentially to 8.135 million bbl/d in October. Similarly, the EIA predicts shale gas volumes will increase 219 MMcf/d to 87.339 Bcf/d.
The projected increase in production follows recent reports by the EIA of a sharp decline in DUCs in all major U.S. shale regions. The DUC well inventory typically “functions as a necessary buffer between drilling activities and oil demand,” the EIA noted in a supplement to its Drilling Productivity Report.