US shale oil production continue decreasing trends
The US shale oil production continue decreasing trends, after the country lost about 1% this month and this is only the beginning. According to forecasts by the US Energy Information Administration (EIA) US shale oil production from the rich rock formations, such as North Dakota’s Bakken and Texas’s Eagle Ford, will drop by 54,227 barrels […]
The US shale oil production continue decreasing trends, after the country lost about 1% this month and this is only the beginning.
According to forecasts by the US Energy Information Administration (EIA) US shale oil production from the rich rock formations, such as North Dakota’s Bakken and Texas’s Eagle Ford, will drop by 54,227 barrels a day this month. In June there will be another drop of 86 thousand barrels per day, reaching a minimum level of 5.56 million barrels per day.
Last year’s decrease in crude oil prices led to the steep and prolonged withdrawal of US oil fields. The companies left idle more than half platforms in the country and covered tens of thousands of jobs. Some of the biggest shale producers, including ConocoPhillips and EOG Resources Inc, said the spending cuts they are large enough to limit strong domestic production. The price of supply of crude oil for June fell with 7 cents to 59.18 USD per barrel in electronic trading on the New York Mercantile Exchange. The futures have risen by 36% since March amid speculation that oil production is about to decline.
Weaker US shale oil production, however, may be short. The price recovery led manufacturers such as Pioneer Natural Resources Co to prepare for commissioning some of their platforms. The company Irving, based in Texas, said last week that maybe will work on more platforms before July. The forecasts of EIA for production in June includes extraction of the big players, which together are responsible for 95% of the growth in domestic production from 2011 to 2013.
The output of the Eagle Ford in Texas, the second largest oil field in the US will fall by 2.8% in June to 1.64 million barrels per day. The production from Bakken region in North Dakota will also decrease by 2.4% to 1.27 million barrels per day, according to EIA. The yield of the right Permian in West Texas and New Mexico, the largest oil field in the US will continue to rise, rising 0.3% to 2.06 million barrels per day.
The estimates of oil production The EIA was based on the number of operating wells of each company and their productivity. According to Baker Hughes Inc number of existing platforms decreased for the 22nd consecutive week, reaching 668 wells on 8 May, which is the smallest number since September 2010.