On Monday, the US Energy Information Administration (EIA) estimated that by July, the country’s oil output from its seven major shale formation is going to reach a close hit of the lowest level in two years at 7.63 million bpd.
The output is likely to fall in every formation on account of producers cutting back expenses following the price crash in April. Overall spending is estimated to nosedive by 35% with the oil rigs count to hit a record low and output to probably go down by 91,000 bpd next month.
Production in the Permian basin of Texas and New Mexico is estimated to slump for the fourth month in a row, slipping to 4.26 million bpd, lowest since May 2019.
The Anadarko and Eagle Ford basins are estimated to post the biggest declines in July, with output to go down by 26,000 bpd and 28,000 bpd respectively.
Data from Baker Hughes mentioned that the country’s oil and gas rig count shrank to an all-time low in the week ended June 12, to 279 units. EIA said producers drilled 428 wells and completed 461 in the biggest shale basins in May, leaving the total drilled but uncompleted (DUC) wells down by 33 to 7,591units, the 12 months in a row of decrease.
