EIA: Major US producing regions to add 127,000 b/d in July

The US Energy Information Administration forecasts crude oil production from the seven major US onshore regions to expand 127,000 b/d month-over-month in July to average 5.475 million b/d. The Permian and Eagle Ford are projected to account for 108,000 b/d of the increase.

In addition to the surging Permian and Eagle Ford, EIA’s monthly Drilling Productivity Report covers the Bakken, Haynesville, Marcellus, Niobrara, and Utica, tracking the total number of active drilling rigs, drilling productivity, and estimated changes in production from existing oil and gas wells.

The seven regions accounted for 92% of US oil production growth and all US gas production growth during 2011-14.

Production from the Permian is forecast to rise 65,000 b/d month-over-month in July to 2.47 million b/d, while the Eagle Ford’s rebound is expected to continue with a 43,000-b/d rise to 1.368 million b/d.

As of the week ended June 9, the Permian has added 234 active rigs since May 13, 2016, and now totals 368, according to Baker Hughes Inc. data (OGJ Online, June 9, 2017). EIA separately estimates the basin’s May tally of drilled but uncompleted (DUC) wells at 2,163, a month-over-month increase of 125.

The Eagle Ford has gained 53 active rigs since Oct. 14 and now totals 84. EIA puts the South Texas shale region’s May DUC tally at 1,363, up 47 month-over-month.

Continued growth also is forecast in the Niobrara, which EIA says is gaining 11,000 b/d month-over-month in July to 462,000 b/d. The Bakken is projected to rise as well, adding 6,000 b/d during the month to average 1.039 million b/d.

In its monthly Short-Term Energy Outlook released last week, EIA said it expects overall US crude production to rise to average a record 10 million b/d in 2018 after averaging 9.3 million b/d this year, largely supported by more drilling in the shale regions, particularly in the Permian and Eagle Ford (OGJ Online, June 7, 2017).

Each of the seven regions is expected to record increased gas production during July, altogether rising 684 MMcfd month-over-month to 51.685 bcfd, according to the DPR. The Permian is forecast to lead the way with a 161-MMcfd jump to 8.457 bcfd, followed by the Haynesville, up 142 MMcfd to 6.588 bcfd; and the Eagle Ford, up 140 MMcfd to 6.36 bcfd.

Outside of Texas, New Mexico, and Louisiana, EIA projects the Marcellus up 87 MMcfd to 19.409 bcfd, Niobrara up 75 MMcfd to 4.733 bcfd, Utica up 64 MMcfd to 4.328 bcfd, and Bakken up 15 MMcfd to 1.81 bcfd.

Contact Matt Zborowski at matthewz@ogjonline.com.

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