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EIA Modeling June Oil Production Growth on Strength of Permian Output

EIA Modeling June Oil Production Growth on Strength of Permian Output Driven by the Permian Basin, oil production out of seven key U.S. onshore regions is set to grow from May to June, while natural gas production is on track to decline, according to the updated projections from the Energy Information Administration (EIA). In its latest Drilling Productivity Report (DPR), EIA said it expects the Anadarko, Appalachia and Permian basins, as well as the Bakken, Eagle Ford, Haynesville and Niobrara shales, to produce a combined 7.733 million b/d in June, up slightly from an estimated 7.707 million b/d in May. 

The Fuse | Bakken Production Erodes as Industry Looks Elsewhere

North Dakota’s Bakken shale played a major role in the growth of oil and gas production, particularly in the 2010s, prior to the explosive growth of the Permian. But the Bakken has struggled with high costs and stagnant production. While oil prices have climbed and drilling activity has rebounded in the Permian to some extent, the Bakken does not appear situated for a similar recovery. Bakken production remains down North Dakota was hit hard from the market meltdown last year, with several hundred thousand barrels per day immediately shut in following the slump in prices. “Every operator was shutting in everything,” North Dakota Director of Mineral Resources Lynn Helms said last year. “We just saw a tremendous decline.” Production plunged by roughly 30 percent.

NatGas Output from Seven Key U S Regions to Fall in May, EIA Says

NatGas Output from Seven Key U.S. Regions to Fall in May, EIA Says While some Lower 48 plays are expected to see natural gas production trend upward over the next month, overall output from seven key U.S. regions is set to decline from April to May, according to updated figures released Monday by the U.S. Energy Information Administration (EIA). Total output from the seven regions the Anadarko, Appalachia and Permian basins, as well as the Bakken, Eagle Ford, Haynesville shales and Niobrara formation is expected to fall by 149 MMcf/d month/month to 82.783 Bcf/d in May, EIA said in its latest Drilling Productivity Report (DPR).

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