U.S. crude production from seven major shale formations is expected to fall by a record 197,000 bbl/d in June to 7.822 million bbl/d, the U.S. Energy Information Administration (EIA) said in a monthly report on May 18.
The output from shale formations would be the lowest since August 2018, according to data from the agency.
U.S. crude production from shale formations has more than doubled since 2013, lifting the country's overall oil output to new record highs. Producers have throttled back production since March as prices have crashed due to oversupply and a sharp drop in demand due to the novel coronavirus outbreak.
In June, oil output from shale is expected to drop in each of seven major shale regions, with the largest drop of about 87,000 bbl/d in the Permian Basin of Texas and New Mexico. In the Permian, the largest producing shale region, production is expected to fall to about 4.29 million bbl/d.
Separately, the EIA projected in its productivity report that U.S. natural gas output would decline for a seventh month in a row to 81.5 Bcf/d in June.
That would be down almost 0.8 Bcf/d from the agency's forecast for May. U.S. output from the big shale fields hit a monthly all-time high of 86.3 Bcf/d in November.
Output in the Appalachia region, the biggest U.S. shale gas formations, was also set to slip for a seventh month in a row in June to 32.6 Bcf/d, down about 0.1 Bcf/d from May.
The EIA said producers drilled 718 wells and completed 705 in the biggest shale basins in April. That left total drilled but uncompleted (DUC) wells up 13 to 7,617, their first increase in 11 months.
The number of wells drilled and completed were both at the lowest levels in a month since December 2016.
Recommended Reading
Halliburton Working to Assess Cause, Impacts of Cyberattack
2024-08-22 - A Halliburton spokesperson said the company had activated a response plan and was working internally and with external experts to remediate the “issue.”
Bechtel Awarded $4.3B Contract for NextDecade’s Rio Grande Train 4
2024-08-06 - NextDecade’s Rio Grande LNG Train 4 agreed to pay Bechtel approximately $4.3 billion for the work under an engineering, procurement and construction contract.
SPATCO Energy Exits RF Investment Fund
2024-08-15 - RF investment Partners said it invested in SPATCO Energy Solution’s $230 million continuation fund, which was led by Kian Capital Partners and Apogem Capital.
CrownRock Offloads Oxy Shares Two Weeks After Closing $12B Deal
2024-08-15 - Underwriters of the offering agreed to purchase CrownRock’s Occidental stock at $58.15 per share, which will result in approximately $1.719 billion in proceeds before expenses.
Delek Logistics Offering Senior Notes to Pay Off Debt
2024-08-15 - Delek Logistics Partners and its subsidiary plan to use the net proceeds from the senior notes offering to pay off a portion of the outstanding borrowings from its credit facility.