The U.S. Energy Information Administration (EIA) on Monday released its August report on drilling productivity in seven key oil and gas producing regions of the U.S. Overall oil production is projected to rise by a whopping 117,000 barrels a day in September to 6.149 million barrels per day. Total production in August is forecast to reach 6.032 million barrels a day, an increase of 113,000 barrels a day compared with July production.
The August report added production from the Anadarko basin of Oklahoma and Texas and combined the Marcellus and Utica basis into a single Appalachia region.
In June the number of drilled but uncompleted (DUC) wells rose by 905 to a total of 6,851 including 906 wells in the Anadarko basin. For the month of July, the EIA expects the DUC count to rise to 7,059, an increase of 208.
WTI crude oil for September delivery had been trading up about 0.4% at around $49.00 before the EIA report and sank to around $47.12, down about 3.8% from Friday’s closing price, following the report.
No overall production declines are forecast either for July or August, but production from new wells is looking for a decline in production of 10 barrels per day per rig. The only declines in new rig productivity come in the Eagle Ford shale and the Permian Basin, down 31 barrels per day per rig and 4 barrels per day per rig, respectively.
Natural gas production is expected to rise by a total of 929 million cubic feet per day with Permian Basin production up by 160 million cubic feet per day. Production in the Appalachian region is expected to rise by 350 million cubic feet in September. Haynesville gas production is forecast to rise by 152 million cubic feet per day and Niobrara production is expected to be up by 100 million cubic feet per day.
WTI crude oil for September delivery settled Monday at $47.59 a barrel, down about 2.5% from Friday’s closing price of $48.82. Tuesday’s settlement price was down 4 cents to $47.55.
Natural gas for September delivery settled Monday at $2.96 per million BTUs, down 2 cents from Friday’s closing price. Tuesday’s settlement price dropped about 4 cents to $2.935.