U.S. Oil Production is now on decline - Mar 2

[dan_s]

On February 25 Reuters reported growth in U.S. shale oil production will slow sharply over the next two years, the chief executive officer of U.S. oilfield services giant Schlumberger (SLB-NC) said on Tuesday. Olivier Le Peuch told Reuters on the sidelines of a conference in Riyadh he expects growth to slow to 600,000 to 700,000 b/d in 2020 and to 200,000 b/d in 2021, down substantially from roughly 1 million b/d in 2019. < Core Labs has reduced their estimate of 2020 U.S. oil production growth from 700,000 b/d to just 200,000 b/d.

Remember that U.S. oil production will be up year-over-year ONLY BECAUSE WE ARE STARTING FROM A MUCH HIGHER LEVEL OF PRODUCTION THAN WE DID A YEAR AGO.

On February 28 Reuters reported U.S. crude oil output fell to 12.78 million b/d in December from 12.86 million b/d in November, the EIA said in a monthly report on Friday. The oil output decline in December came as output in the Gulf of Mexico fell 47,000 b/d and North Dakota production dropped by 40,000 b/d, according to the EIA monthly publication the 914 report. Texas, the top shale producer, saw output rise by 32,000 b/d in the month. Monthly natural gas production in the U.S. Lower 48 states slipped to 106.8 Bcf per day in December from a record 107.2 Bcf per day in November. That 0.4 Bcf per day decline in Lower 48 gas production was the first decline in seven months.

In Texas, the biggest gas producing state, output increased 0.6% to 29.4 Bcf per day in December. The state's monthly all-time high was 29.6 Bcf per day in October 2019. In Pennsylvania, the second-biggest gas-producing state, output fell 1.9% to 19.5 Bcf per day in December, down from a record high 19.9 Bcf per day in November.