The EIA expects US shale oil production to drop next month to 8.526 million barrels a day in the seven most prolific shale basins in the United States, according to new data released Monday.
The forecast for May of an average decline of 182,673 barrels per day in oil production is expected to be the second largest decline, according to EIA data from 2007. The largest decline in oil production, according to l ‘EIA is expected to be down this month, down from 193,625 barrels a day since March.
The drilling productivity report reports six weeks of significant declines, losing more than half a million barrels per day – 546,622 barrels – since December 2019.
However, oil production in these seven basins has continued to show an overall upward trend over the past decade.
And year after year, oil production is still on the rise, despite the sharp declines in recent weeks.
Oil demand and oil prices have fallen sharply in recent months, with the destruction of global oil demand hovering around 30 to 35 million bpd. Meanwhile, oil prices have been particularly volatile, with the WTI trading below $ 30 for almost a month.
The EIA predicts that the Permian Basin, responsible for more than half of the reported shale production, will see a drop of 75,700 b / d in May to 4.5 million barrels per day. The second largest pool, the Eagle Ford, is forecast to drop 34,790 barrels per day to 1.3 million bpd.
All basins are expected to experience lower production for May, according to the EIA.
And it’s not just oil that is affected; Natural gas production is also expected to decrease next month.
The EIA projects natural gas production in the seven basins to decrease by 869 million cubic feet per day to 83,158 million cubic feet per day.
By Julianne Geiger for Oilprice.com
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