EIA sees 80,000 b/d rise in March from major US onshore producing regions
The US Energy Information Administration projects crude oil production from seven major US onshore producing regions to climb 80,000 b/d month-over-month in March to 4.873 million b/d.
The overall increase reflects additions of 70,000 b/d from the Permian basin and 14,000 b/d from the Eagle Ford shale, marking the South Texas region’s first rise in Drilling Productivity Report data since late 2015.
EIA’s monthly DPR tracks the total number of active drilling rigs, drilling productivity, and estimated changes in production from existing oil and natural gas wells in the Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara, Permian, and Utica.
Permian production is expected to reach 2.25 million b/d during March. The basin has accounted for much of the country’s rig-count rebound since last spring, and expanding oil-output projections have followed.
Between the weeks ended May 13, 2016, and Feb. 10, 2017, the Permian’s rig count spiked from 134 to 301, according to Baker Hughes Inc. data. During January, its count of drilling but uncompleted (DUC) wells rose 84 month-over-month to 1,757, EIA also said in the DPR.
The impact of increased drilling also might be showing in the neighboring Eagle Ford, where output is expected at 1.077 million b/d in March. Between June 3, 2016, and Feb. 10, 2017, its rig count grew from 29 to 59. Its DUC well count during January gained 11 month-over-month to 1,255.
Continued increases are forecast in the Niobrara, where EIA projects a 15,000-b/d month-over-month rise in March to 447,000 b/d. The Bakken, meanwhile, is expected maintain its downward trend during the month, shedding 18,000 b/d to 976,000 b/d.
EIA anticipates overall gas production from the seven regions to rise 524 MMcfd month-over-month in March to 49.135 bcfd. Expected to lead the way is the Marcellus, up 192 MMcfd to 19.105 bcfd. It’s followed by the Permian, up 129 MMcfd to 7.829 bcfd; Haynesville, up 109 MMcfd to 6.171 bcfd; Utica, up 62 MMcfd to 4.161 bcfd; and Bakken, up 2 MMcfd to 1.762 bcfd.
Only Eagle Ford gas output is seen falling during the month. Down 25 MMcfd month-over-month, the region is projected to average 5.559 bcfd in March.
Contact Matt Zborowski at [email protected].
