Analysts expected that US crude oil production cut could amount to at least 300,000 bpd In May, rising from 100,000 bpd reduction in April. Several producers specifically said they cut output by well shut-ins, while some others did not specify their measures to curtail their output. Producers can lower their output by reducing the number of new wells put on production.
Continental Resources said it would cut output by 69,000 bpd this month, followed by an additional 150,000 bpd in May and June. ConocoPhillips mentioned about a 125,000 boepd (about 60,000 bpd) reduction of its gross output in May. Cimarex Energy plans to cut their production by 30%, or about 27,000 bpd in May. PDC Energy also plans to lower output by the same amount in May and June.
Meanwhile, Parsley’s CEO Matt Gallagher mentioned a plan to shut in 400 “lower-producing wells,” which is estimated to be equal to 22,000 bpd reduction over April to June. In addition, Enerplus has started shutting in some selected wells in the Williston basin for a temporary period. This step is expected to give a little impact on Enerplus’ April production. However, its May output is likely to be lowered further to deal with weaker oil pricing.
