EIA starting to realize slowing U.S. oil production

[dan_s]

On February 18 Reuters reported U.S. shale oil output is expected to rise by about 18,000 b/d in March to a record 9.18 million b/d, driven by gains in the Permian Basin, data from the U.S. EIA showed on Tuesday. Still, output is expected to remain flat or decline in six out of seven major shale formations.

U.S. natural gas output in the big shale basins was projected to decrease for a third straight month in March, posting the biggest drop since January 2019, the data showed. The rate of growth has slowed as independent producers cut spending on new drilling and completions to focus more on improving earnings results.

Oil production from the Permian Basin of Texas and New Mexico, is expected to rise 39,000 b/d to a new record of 4.86 million b/d. That would be the smallest monthly increase since September, the data showed. Production from North Dakota and Montana's Bakken region is expected to fall - for the fourth straight month - by about 2,000 b/d to about 1.47 million b/d.

U.S. natural gas output from shale formations is expected to drop by about 0.2 Bcf per day to 85.4 Bcf per day in March. Natural gas output in the Appalachia region, the biggest U.S. shale gas basin, was set to decline by 0.2 Bcf per day to 33.13 Bcf per day in March. That would mark the fourth straight month of declines. In the Permian, gas output is expected to jump by about 0.2 Bcf per day to a new record of 17 Bcf per day in March.