U.S. Oil Production in 2021
Posted: Fri Dec 04, 2020 10:16 am
"The Q3 Dallas Energy Survey from end-September showed that most executives from 154 oil and gas firms—66 percent—believe U.S. oil production has peaked. Total U.S. crude oil production is set to remain close to its current levels of around 11 million barrels per day (bpd) through the end of 2021, as new drilling activity will not be enough to offset declines from existing wells, the Energy Information Administration (EIA) said last month."
Read more: https://oilprice.com/Energy/Energy-Gene ... bound.html
MT TAKE: I just don't see how U.S. oil production can hold at 11 million BOPD unless there is a significant increase in the active rig count and a doubling of the number of active completion crews. It is normal for U.S. production to fall in Q1 each year just because of weather related slowdowns in field work. There are some companies completing a lot of DUC wells this month to get them into year-end reserve reports because those reserve reports are used to get their revolving credit agreements renewed. Lots of those crews will be back in the yard by New Years Day.
Read more: https://oilprice.com/Energy/Energy-Gene ... bound.html
MT TAKE: I just don't see how U.S. oil production can hold at 11 million BOPD unless there is a significant increase in the active rig count and a doubling of the number of active completion crews. It is normal for U.S. production to fall in Q1 each year just because of weather related slowdowns in field work. There are some companies completing a lot of DUC wells this month to get them into year-end reserve reports because those reserve reports are used to get their revolving credit agreements renewed. Lots of those crews will be back in the yard by New Years Day.