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.
Welcome to SUPER DUG [WATCH]
2023-05-23 - Roughly 2,000 energy professionals from the Lower 48 and beyond gathered on the first day of Hart Energy's SUPER DUG conference to talk energy in Fort Worth, Texas.
SUPER DUG: Day Two Rolls On [WATCH]
2023-05-24 - After an electric opening to Hart Energy’s SUPER DUG conference, day two saw deep dives into the Permian Basin, drilling and completions, new technologies and a keynote from retired Gen. Wesley Clark.
SUPER DUG 2023: Diamondback Energy's Danny Wesson Talks M&A Competition [WATCH]
2023-05-23 - Diamondback Energy's Danny Wesson says that M&A in the Permian Basin "will continue to get more and more competitive for core inventory."
Gaspar: Energy ‘Not Going Out of Style’
2023-05-22 - Devon is thinking about energy ‘beyond oil and gas’ as it looks to supply future needs.