Between August of 2017 and August of 2018, U.S. crude oil production from seven major shale regions is forecast to rise by 1.4 million barrels of oil per day to 7.43 million barrels a day. The month-over-month increase from July to August is expected to total 93,000 barrels a day.
The forecast was published Monday by the U.S. Energy Information Administration (EIA) in its monthly Drilling Productivity Report. Total production in September is forecast to reach 7.52 million barrels a day, an increase of 90,000 compared with August production.
In May the number of drilled but uncompleted (DUC) wells rose by 31 to a total of 7,772, including 100 new wells in the Permian Basin.
In June the number of DUC wells rose by 193 to a total of 7,943, including 164 new wells in the Permian Basin.
And in July the number of DUC wells rose by 165 to a total of 8,033, including 167 new wells in the Permian Basin.
No overall oil production declines are forecast either for August or September, although production from new wells is expected to decrease by a barrel per day per rig to 649 in September.
Natural gas production is expected to increase by 1.01 billion cubic feet per day month over month in September. Production in the Permian Basin is expected to rise by 243 million cubic feet in the month. Haynesville gas production is forecast to rise by 154 million cubic feet per day, and Niobrara production is expected to be up by 54 million cubic feet per day.
West Texas Intermediate crude oil for September delivery traded Tuesday at $67.13 a barrel, down about 0.1% from Monday’s closing price of $67.20. September crude opened at $67.39 Tuesday morning.
Natural gas for September delivery traded Tuesday at $96 per million BTUs, up about 1.2% from Monday’s closing price of $2.93. September gas opened at around $2.93 Tuesday morning.