U.S. shale oil production set to hit new high this year in June
Last Monday, the U.S. Energy Information Administration (EIA) stated in its monthly equipment production report that U.S. oil production in shale producing areas in June would exceed this year's record.
The EIA said output from the top basin will reach 9.85 million barrels per day, breaking the all-time high since December.
U.S. shale oil production accounts for about three-quarters of its total oil production. Due to the increase in oil well production, shale oil production continues to rise. It is expected that the output of each new drilling rig in the Permian Basin will reach 1,400 barrels per day in June, which will reach 1,400 barrels per day. A handful of the highest monthly production records since November 2021.
The EIA said output from the Permian, the largest U.S. oil field occupying West Texas and New Mexico, will increase by 17,970 barrels per day to 6.19 million barrels per day. Eagle Ford in southeast Texas is expected to produce 1.11 million barrels per day, the highest output since December. Bakken daily production will increase slightly by 520,000 barrels per day to 1.31 million barrels per day, the highest output since December.·
EIA expects total natural gas production from large shale basins to fall to 99.2 billion cubic feet per day in June from 99.5 billion cubic feet per day in May, the lowest output in five months.
In November 2023, the monthly natural gas production in large shale basins reached 10.19 billion cubic feet per day, a record high.
U.S. natural gas production is expected to decline in 2024 as natural gas prices fell in February and March and producers reduced drilling activity.
The largest shale gas basin in the United States, Appalachia, which spans Pennsylvania, Ohio and West Virginia, will see its production in June fall to 35.8 billion cubic feet per day from 36 billion cubic feet per day in May, breaking the 13-year mark. lowest in months. Appalachian production reached 37.2 billion cubic feet per day in December 2023, breaking the all-time record.
Additionally, EIA expects new gas well production per rig in Appalachia to rise to 28.6 million cubic feet per day in June, a 29-month production record.
If forecasts are correct, this would be the 22nd consecutive month of growth in single-well production from new rigs in Appalachia, which peaked in December 2020 (34.4 cubic feet per day).
