Deflating oil and natural gas production from seven of the most prolific U.S. onshore unconventional plays is expected to continue in August, according to the Energy Information Administration (EIA).
Total oil production from the Anadarko, Appalachian and Permian basins, and the Bakken, Eagle Ford, Haynesville and Niobrara formations is expected to decline to 7.49 million b/d in August from 7.55 million b/d in July, according to EIA’s latest Drilling Productivity Report (DPR), which was released Monday.
Decreases in oil production are expected in the Anadarko (373,000 b/d, compared with 391,000 b/d), the Appalachia (115,000 b/d from 116,000 b/d), Eagle Ford (1.11 million b/d from 1.13 million b/d), Haynesville (36,000 b/d from 37,000 b/d), Niobrara (600,000 b/d from 618,000 b/d), and the Permian (4.15 million b/d from 4.16 million b/d). Only the Bakken is expected to show a month/month increase to 1.11 million b/d from 1.10 million b/d, EIA said.
At the same time, total gas production from the plays is forecast to be 79.55 Bcf/d in August, compared with 80.27 Bcf/d in July.
Again, the only play forecast to see increased gas production is the Bakken, which EIA expects will reach 2.51 Bcf/d next month, compared with 2.49 Bcf/d in July. Month/month declines are expected in the Anadarko (5.98 Bcf/d, down from 6.16 Bcf/d), Appalachia (32.71 Bcf/d, down from 32.92 Bcf/d), Eagle Ford (6.02 Bcf/d, down from 6.10 Bcf/d), Haynesville (11.67 Bcf/d, down from 11.80 Bcf/d), Niobrara (5.27 Bcf/d, down from 5.35 Bcf/d), and Permian 15.39 Bcf/d, down from 15.44 Bcf/d).
It would be the fourth consecutive month/month production decline from the plays, after more than three years of continuous increases.
Drilled but uncompleted (DUC) well counts across the Big Seven ended June at 7,659, an increase of 35 from May, EIA said. DUCs increased in four of the seven plays, with the Bakken up seven to 882, Haynesville up one to 264, Niobrara up two to 452, and Permian up 49 to 3,488.
The productivity of new gas rigs in the Big Seven plays is expected to increase by 1.19 Bcf/d in August to 6.66 Bcf/d. At the same time, new well oil production per rig is expected to increase by 99 b/d during the month to 904 b/d.
EIA compiles the DPR using recent U.S. data on the total number of drilling rigs in operation along with estimates of drilling productivity and estimated changes in output from existing wells to provide estimated changes in production.
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