Crude oil production in November from seven major US shale plays is expected to drop 93,000 b/d to 5.12 million b/d, according to the US Energy Information Administration’s latest Drilling Productivity Report (DPR). That’s back up to the same level forecast for September after a somewhat smaller decline was projected for October.
Total U.S. oil production will drop 125,000 to 150,000 barrels of oil per day each month in the 4th quarter.
EIA confirms sharp drop in U.S. oil production
EIA confirms sharp drop in U.S. oil production
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: EIA confirms sharp drop in U.S. oil production
Month after month, the EIA Drilling Productivity Report shows declining production in the seven largest oil and gas fields in the U.S.
See: http://www.eia.gov/petroleum/drilling/#tabs-summary-2
Outside of these seven areas, only the SCOOP/STACK play in Oklahoma has any drilling activity. Other areas that produce about 40% of U.S. oil and gas are all but shut down and they are all on steady decline. U.S. oil production peaked in April, 2015. By March 31, 2016 (in just one year) our oil production will have declined by over 1.2 million barrels per day. I think the rate of decline is now accelerating, so the actual decline may be more than 1.5 million barrels per day. This means that within six months the U.S. refiners will need to import more than 50% of the oil they need to meet demand.
In my opinion, this is a national security issue but it will never be mentioned by any of the presidential candidates.
See: http://www.eia.gov/petroleum/drilling/#tabs-summary-2
Outside of these seven areas, only the SCOOP/STACK play in Oklahoma has any drilling activity. Other areas that produce about 40% of U.S. oil and gas are all but shut down and they are all on steady decline. U.S. oil production peaked in April, 2015. By March 31, 2016 (in just one year) our oil production will have declined by over 1.2 million barrels per day. I think the rate of decline is now accelerating, so the actual decline may be more than 1.5 million barrels per day. This means that within six months the U.S. refiners will need to import more than 50% of the oil they need to meet demand.
In my opinion, this is a national security issue but it will never be mentioned by any of the presidential candidates.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group