U.S. crude production edged lower in January to 11.87 million barrels per day (bbl/d), from a revised 11.96 million bbl/d in December, the U.S. Energy Information Administration (EIA) said in a monthly report on March 29.
Production in Texas fell by 64,000 bbl/d in the month and in North Dakota output rose by 9,000 bbl/d. Meanwhile, production in the federal waters of the Gulf of Mexico was largely unchanged, according to the report.
The decline in Texas, home to the Permian Basin, the biggest oil patch in the U.S., was the first in about a year, the data showed.
A surge in shale production has vaulted the U.S. to the position of world's biggest producer, but an unexpected crash in oil prices in the fourth quarter forced some producers to pull back on spending and drilling plans for 2019.
Independent producers are slowing exploration and cutting staff and budgets amid investor pressure to control spending and boost returns.
For example, Pioneer Natural Resources Co. recently dropped a pledge to hit 1 million bbl/d by 2026 amid pressure from investors to boost returns. It shifted its emphasis to generating cash flow and replaced its CEO posting fourth-quarter profit that missed Wall Street earnings targets by 36 cents a share.
RELATED: Scott Sheffield To Return As Pioneer Natural Resources CEO
Meanwhile, gross natural gas production in the U.S. Lower 48 fell for the first time in a year, sliding to 98.12 billion cubic feet per day (Bcf/d) in January from a record high 98.29 Bcf/d in December, according to the EIA's 914 production report.
The last time gas output in the Lower 48 declined was in January 2018 when production fell by 1.56 Bcf/d.
In Texas, the nation's largest gas producer, output eased by 0.1% to 25.86 Bcf/d in January from a record high 25.89 Bcf/d in December. That compares with 22.03 Bcf/d in January 2018.
In Pennsylvania, the second-biggest gas-producing state, production rose to a record high 18.56 Bcf/d in January, up 2.1% from 18.18 Bcf/d in December. That compares with output of 16.14 Bcf/d in January 2018.
Recommended Reading
Petrobras to Step Up Exploration with $7.5B in Capex, CEO Says
2024-03-26 - Petrobras CEO Jean Paul Prates said the company is considering exploration opportunities from the Equatorial margin of South America to West Africa.
E&P Highlights: April 15, 2024
2024-04-15 - Here’s a roundup of the latest E&P headlines, including an ultra-deepwater discovery and new contract awards.
Valaris Updates Fleet Status
2024-02-19 - The backlog of these contracts and extensions is valued at $1.2 billion.
After 4Q Struggles, Transocean’s Upcycle Prediction Looks to Pay Off
2024-02-21 - As Transocean executives predicted during third-quarter earnings, the company is in the middle of an upcycle, with day rates and revenues reaching new heights.
E&P Highlights: Feb. 26, 2024
2024-02-26 - Here’s a roundup of the latest E&P headlines, including interest in some projects changing hands and new contract awards.