U.S. Oil Production on decline

[dan_s]

Bakken crude oil production and rigs
On July 13, 2015, the EIA (U.S. Energy Information Administration) released its Drilling Productivity Report. It estimates that in June 2015, the Bakken shale produced 1.22 MMbpd (million barrels per day) of crude oil. This is 1.3% less than May production levels but 9% greater than production a year ago. In June, Bakken shale month-over-month crude oil production dipped for the second time in a row.

The number of rigs working at the Bakken decreased to 75 in June, down from 78 in May. A year ago, there were 174 drilling rigs in the region. Most of these rigs are horizontal in trajectory, or type.

[dan_s]

Take a look at this: http://www.eia.gov/petroleum/drilling/#tabs-summary-2

U.S. oil production will be AT LEAST 500,000 barrels per day lower in December from the peak set in March.
Note how much natural gas production is declining. This should become a big story heading into the winter heating season.

Heading into 2016 United States natural gas supply/demand will be much tighter:
My SWAG:
Production will be down 3.0 BCF per day
+ Canada will have less gas to send to us.

Per Simmons & Company report, natural gas demand will be 3.3 BCF per day higher in 2016
+1.2 BCF per day for LNG exports
+0.6 BCF per day for pipeline exports (primarily to Mexico)
+0.9 BCF per day for power generation
+0.6 BCF per day for industrial demand