EIA forecasts record shale oil production in the United States

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Crude oil production in the main seven shale basins in the United States will drop by a record 197,000 barrels a day next month, the Energy Information Administration reported on Monday.

Production in the seven most prolific shale basins in the United States is forecast to fall to 7.822 million b / d, according to the EIA, compared to 8.019 million b / d this month. It will be a record monthly loss.

The biggest drop on the list for crude oil and condensate production is in the Permian, which is expected to drop 87,000 b / d to 4.290 million b / d. The next largest pool, the Eagle Ford, is expected to drop 36,000 bpd in June to 1.174 million bpd.

Losses are expected in the seven basins of the EIA list.

Gas production is also expected to experience widespread losses, with the EIA forecasting a loss of 779 million cubic feet per day. For gas production, the EIA predicts that Anadarko will experience the largest decline of 244 million cubic feet per day to 6,486 million. The next largest loss in June will come from the Permian, with a loss of 210 million cubic feet per day.

The expected production losses this month and the next are not surprising, although significant. Oil producers around the world have reduced production both as a market strategy and as a natural consequence of low oil prices and reduced crude oil storage capacity.

Oil prices climbed Monday following positive developments regarding a possible coronavirus vaccine, as demand for crude oil from China is on the rise and the EIA has predicted even larger production losses next month after the United States has already seen its crude oil production drop by more than 1 million barrels a day.

WTI was trading 11.59% today at 4:30 p.m. EDT at $ 32.84.

By Julianne Geiger for Oilprice.com

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