On Monday, the US Energy Information Administration (EIA) predicted that in December, the US oil output from shale formation is to drop by 139,000 bpd to around 7.51 million bpd, the lowest level since June.
The overall shale production is predicted to fall for the third consecutive month, the most significant since May. From all US seven major shale formations, the output is seen to fall in six, excluding the Haynesville region which is expected to be steady.
The Permian basin is forecast to post the biggest fall by around 37,000 bpd to 4.3 million bpd. It was the sharpest decline since May.
Bakken is estimated to post the second biggest decrease of about 32,500 bpd to 1.13 million bpd. It would be the third monthly drop in a row.
However, the development of the coronavirus vaccine has slowly propped up oil prices, which has been driving the rise in US oil rig count. The count jumped by 10 to 236 in the week ended November 13.
Natural gas output is also seen to decelerate to the lowest since June by slipping by 0.7 bcfd to 81.5 bcfd. The Anadarko region is forecast to post the biggest fall by 0.14 bcfd. Next month, the output is seen to slump in all 7 regions.
In October, the biggest shale basins’ producers drilled 316 wells ad completed 402. The total drilled but uncompleted (DUC) wells plunged by 86 to 7,558 units. It was the third monthly decline in a row and the lowest since December 2018.
