U.S. oil output from seven major shale formations is set to rise by about 38,000 barrels per day (BPD). This is set in July to about 7.8 million BPD. The highest since November, the U.S. Energy Information Administration said in a monthly forecast on Monday.
The biggest increase is set to come from the Permian. They are the top-producing basin in the country. The output will rise by 56,000 bpd to about 4.66 million bpd, the highest since March 2020.
The forecast increase in total output was attributable to the Permian and Appalachia basins. There are expectations for the other five basins to decline or remain flat.
Expectations are for it to register declines of 4,000 BPD. The Eagle Ford basin in South Texas and the Bakken basin in North Dakota and Montana.
Output in the Bakken will be sliding to about 1.1 million BPD, the lowest since July 2020.
U.S. producers have increased drilling activity as oil prices have rebounded to about $70 a barrel.
Natural gas production from the major shale basins will be increasing for the first time in four months. This is according to EIA’s drilling productivity report going back to 2007.
Total gas output will increase less than 0.1 billion cubic feet per day (bcfd) to 84.3 bcfd in July. That compares with a monthly record high of 86.6 bcfd in December 2019.
Click here to read the full article about U.S. Shale Oil Output.
Source: Reuters
If you have further questions, feel free to reach out to us here.
