On Tuesday, on its monthly forecast, the US Energy Information Administration (EIA) expected the country’s shale oil output to fall for the third consecutive month in November.
Next month, shale oil output would likely decline by 123,000 bpd to 7.69 million bpd, the biggest drop since May. Most of the US seven major shale formations are estimated to post decelerations.
The Eagle Ford basin of South Texas is expected to post the sharpest slump by 34,000 bpd to 1 million bpd, the lowest level since May 2013. The US biggest shale oil basin, the Permian, is forecast to record a 17,000 bpd fall to around 4.4 million bpd.
US oil and gas producers have sharply cut spending and output in 2020 due to the crash in prices. However, they added oil and natural gas rigs for the fourth straight month for the first time since June 2018 as in the past few months, crude prices maintained at around USD40/barrel.
Separately, the country’s natural gas production is seen to decline for the third straight month in November to 81.8 bcfd, down by 0.6 bcfd from its forecast for October. From the big shale fields, the output would reach a monthly record high of 86.9 bcfd next month.
The EIA estimated that output from the US biggest shale gas formation Appalachia to go down for the third consecutive month to 33.6 bcfd in November, down by 0.1 bcfd from October.
