The EIA's "Drilling Productivity Report" dated June 8, 2014 shows that crude oil production from the country's seven largest oil and gas producing regions is forecast to drop by 91,000 barrels per day from June to July. Since there is very little drilling activity outside of these seven regions, it is likely that total U.S. oil production will be dropping by over 100,000 BOPD each month until the rig count goes back up.
The EIA also expects natural gas production to decline by 221,000 Mcf per day. I expect the decline in gas production to accelerate as we move into the fall. There are not enough rigs drilling for oil or gas to maintain our current production levels.
EVERY OIL AND GAS WELL EVER DRILLED goes on decline soon after it is placed on-line.
Full report at: http://www.eia.gov/petroleum/drilling/#tabs-summary-2
U.S. Oil Production Falling today
U.S. Oil Production Falling today
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group