U.S. oil output growth from the Permian Basin is expected to offset declines in every other shale formation in April, helping push overall production up by about 18,000 barrels per day to a record 9.08 million barrels per day (MMbbl/d), data showed on March 16.
Output from the Permian Basin of Texas and New Mexico, is expected to rise 38,000 bbl/d to a record 4.79 MMbbl/d, data from the U.S. Energy Information Administration (EIA) showed.
U.S. natural gas production is expected to notch its fifth monthly decline in a row in April and post the biggest monthly decline since January 2019, according to the data.
The Permian, the biggest shale basin in the country, has been one of the biggest drivers of a shale oil boom that helped make the United States the biggest oil producer in the world, ahead of Saudi Arabia and Russia.
However, the rate of growth has slowed as independent producers cut spending on new drilling and completions to focus more on improving earnings results.
U.S. oil producers have slashed spending and announced further cuts over the past week as a price war between Saudi Arabia and Russia has sent crude prices plunging, adding to worries about a crash in demand due to the coronavirus pandemic.
Oil production from North Dakota and Montana’s Bakken region is expected to fall—for the fifth straight month—by about 1,400 bbl/d to about 1.47 MMbbl/d.
U.S. natural gas output from shale formations is expected to drop by about 0.2 billion cubic feet per day (Bcf/d) to 85.0 Bcf/d in April.
Gas output in the Appalachia region, the biggest U.S. shale gas formation, was set to decline by 0.2 Bcf/d to 32.6 Bcf/d in April. That would be its fifth monthly decline in a row.
In the Permian, gas output is expected to jump by about 0.2 Bcf/d to a new record of 17.2 Bcf/d in April due to an increase in associated gas from oil output.
The EIA said producers drilled 1,014 wells—the least since June 2017—and completed 1,074 in the biggest shale basins in February, leaving total drilled but uncompleted wells down 60 to 7,637, the lowest since November 2018.
Ingenuity and innovation are delivering steady growth in the U.S. Gulf of Mexico oil and gas industry.
The company said it now plans to produce about 295,000 to 310,000 barrels of oil equivalent per day (boe/d) for the full year, lower than its previous forecast of 310,000 to 325,000 boe/d.
We’ve entered the Tom Petty zone of rig count decline. Talk to drilling contractors and they report business is Free Falling, Free Falling. Tight formation rig count dropped 39 this past week, including 22 in the Permian, five in the Eagle Ford and six in Oklahoma’s Anadarko Basin.