US shale production is set to rise by 131,000 barrels per day next month to a record high of 6.95 million b/d, according to the US Energy Information Administration. Anadarko photo.
US shale output gains driven by rising production in Permian, Eagle Ford formations
According to the US Energy Information Administration, US shale oil output is forecast to increase by 131,000 barrels per day (b/d) next month to a record high of 6.95 million b/d.
The expected increase is 105,000 b/d higher than March’s anticipated high of 6.82 million b/d.
According to the EIA report, the increase in production is due largely to gains in the Permian and Eagle Ford basins.
The EIA says it expects production in the Permian to rise by 80,000 b/d to a record high of 3.2 million b/d in April. Eagle Ford production is expected to increase by 23,000 b/d to 1.3 million b/d next month, the highest since March 2016.
The rise in US shale output could upset the tenuous global supply balance, offsetting OPEC’s supply cut agreement which has seen participants reduce their combined output by 1.8 million b/d.
US natural gas production is also expected to increase. According to the EIA, output is forecast to rise to a record 66.1 billion cubic feet per day (bcfd), up almost 1 bcfd over the March forecast. This would also be the 15th straight month for increases in production and output is expected to rise in all US big shale basins next month.
Output in the Appalachia region, the largest US shale gas play, is expected to increase by almost 0.4 bcfd to a record high of 27.6 bcfd next month. This time last year, Appalachia production was 23.3 bcfd.
Last April, US natural gas production was only 55.2 bcfd.
The EIA reports producers drilled 1,267 wells and completed 1,157 in the largest shale basins in February. The number of drilled, but uncompleted wells now sits at a record high of 7,601.