NEW YORK (Reuters) – U.S. oil production from seven major shale formations is expected to increase for a third consecutive month, from around 13,000 barrels per day (bpd) in May to 7.61 million bpd, the l ‘US Energy Information Administration.
The biggest increase is expected to come from the Permian, the country’s largest producing basin, where production is expected to increase by 52,000 b / d to around 4.47 million b / d, the highest since April 2020, the EIA said. in a monthly forecast.
Production from other major producer basins such as the Bakken and Eagle Ford is expected to decline by 12,000 b / d and 9,000 b / d, respectively. Production in the Bakken Basin of North Dakota and Montana is expected to drop to 1.1 million bpd, the lowest since July 2020, data shows.
Oil producers in the United States have started slowly adding drilling rigs as prices rebound, but the lukewarm recovery in demand and investor pressure to reduce debt has kept companies from rushing to increase their production. [RIG/U]
Natural gas production from major shale basins is expected to decline from about 0.1 billion cubic feet per day (bcfd) to 82.8 bcfd in May, according to the EIA Drilling Productivity Report.
This compares to a monthly record of 86.9 billion cubic feet in December 2019.
Gas production in the Appalachians, the largest shale gas basin, is expected to decline 0.1 Bcf to 34.1 Bcf in May, its lowest since October 2020. This compares to a monthly record of 35.2 Bcf in December 2020.
If correct, it would reduce production in Appalachia for a record fifth consecutive month, according to EIA data dating back to 2007.
Gas production at Haynesville, meanwhile, increased 0.1 billion cubic feet to a record 12.2 billion cubic feet in May.
The EIA said producers drilled 464 wells and completed 641 in the largest shale basins in March. That left the total drilled but incomplete (DUC) down 177 to 6,912, their lowest since November 2018.
This was the most for wells drilled and completed since April 2020 and reduced UCRs for a record ninth consecutive month, according to EIA data dating back to 2014.
Reporting by Devika Krishna Kumar and Scott DiSavino in New York Editing by Matthew Lewis and Marguerita Choy