The U.S. Energy Information Administration (EIA) on Monday released its May report on drilling productivity in seven key oil and gas producing regions of the U.S. Overall oil production is projected to decline by 113,000 barrels per day from 4.962 million barrels per day in May to 4.848 million barrels per day in June. Total production in April reached 4.95 million barrels a day.
New well production is expected to rise from an estimated 562,000 barrels a day in May to 575,000 barrels a day in June.
The largest decline is forecast for the Eagle Ford play in South Texas where production is expected to slip by 58,000 barrels a day. Production in the Bakken play in North Dakota and Montana is expected to drop by 28,000 barrels a day and Niobrara production is pegged to fall by 15,000 barrels a day. Production from the Permian Basin is forecast to fall by 10,000 barrels a day and the output from the Haynesville and Marcellus shale plays is expected to drop by 1,000 barrels per day in each region. No change is expected at the Utica shale play.
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Natural gas production is expected to drop by 464 million cubic feet per day with Eagle Ford production down the most (195 million cubic feet). Utica shale gas production is forecast to rise by 4 million cubic feet per day.
WTI crude oil for June delivery traded at around $47.65 a barrel just ahead of the EIA report and slipped to around $47.60 per barrel following the report’s release. June crude closed at $46.21 on Friday.
Natural gas for June delivery traded down about 3.4% after the report was released at $2.03, down 7 cents from Friday’s closing price.
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