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Permian, Eagle Ford lead US crude output higher

15 May 2017 21:33 (+01:00 GMT)
Permian, Eagle Ford lead US crude output higher

Houston, 15 May (Argus) — US shale crude output is expected to rise by 122,000 b/d to 5.4mn b/d next month, according to new data from the US Energy Information Administration (EIA).

The largest increases will be in the Permian basin in Texas and New Mexico, and the Eagle Ford in south Texas, the EIA said in its latest Drilling Productivity Report.

Permian basin production should increase by 71,000 b/d from May to June to about 2.49mn b/d.

Output in the top-producing Permian has been more resilient than in other regions during the downturn in commodity prices because of lower extraction costs. Midstream companies are investing heavily to add takeaway capacity out of the region because of the expected rise in output.

Eagle Ford oil production is expected to rise by 36,000 b/d to about 1.28mn b/d in June.

Production is also expected to rise in the Niobrara – by 7,000 b/d to 457,000 b/d. The Niobrara is in Colorado, Kansas, Nebraska and Wyoming.

Crude output in the Marcellus shale, the top US natural gas field which is mostly in Pennsylvania, is forecast to increase by 1,000 b/d to 41,000 b/d. Natural gas output in the Marcellus this month is expected to exceed 19.2 Bcf/d (544mn m³/d).

Crude output in the Bakken should move higher by 6,000 b/d in June to 1.03mn b/d. The Bakken region includes 15 counties in North Dakota and five counties in Montana.

Crude production in the Utica shale, which is mostly in Ohio, should increase by 1,000 b/d to 54,000 b/d and production in the Haynesville shale in Louisiana should be unchanged at 45,000 b/d.

The EIA's monthly report bases its estimates on the rig count combined with existing productivity data and estimated changes in existing production. The seven fields in the report accounted for 92pc of US crude production growth from 2011-2014.