US shale oil production continue decreasing trends

Noam Stiekema

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 […]

US shale oil production

US shale oil productionThe 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.

Read this next

Retail FX

Lion launches multi-currency trading accounts powered by AI

The core advantages of multi-currency trading account services include enabling significant cost savings and higher efficiency for investors.

Inside View, Interviews

Interview: Stanislav Bunimovich on Finalto’s white label solution

To explore what makes Finalto’s white-label solutions stand out in such an incredibly competitive market, Finalto sat down with its Chief Operating Officer, Stanislav Bunimovich, for an interview. 

Digital Assets

Talos acquired Cloudwall for a better portfolio management system

Cloudwall’s additional expertise in portfolio risk systems further positions Talos at the forefront of portfolio management systems across spot, futures, perps, and options.

Digital Assets

Bybit’s Bitcoin market share explodes, up by 400%

“This milestone is a testament to our sharp trading products and the loyalty of our users. As the industry evolves, Bybit remains at the forefront, ready to set new standards in the crypto trading world.”

Crypto Insider

Why Self-Custody is the Key to Secure Crypto Trading

Crypto trading is fast gaining popularity; as of writing, the total market capitalization stands at $2.3 trillion, double what it was at the onset of the 2021 bull market.

Industry News

UK FCA sues Lee Steven Maggs for FX scam Kube Trading

‘Kube Trading’ allegedly received around £2.67 million for FX trading and concealed significant losses from investors.

Market News

AUD/USD Soars Following Inflation Report

Australia’s CPI surge hints at prolonged tight monetary policy. Watch the Aussie dollar as US economic data looms.

Institutional FX

GCEX reports drop in turnover in 2023 due to crypto winter

“The crypto winter had a huge impact across the industry, and GCEX was no exception. However, in response to the decline in revenue, we have been resilient and adaptive, navigating our costs effectively and diversifying revenue streams such as introducing staking services for institutional and professional clients.”

Institutional FX

FxGrow taps Integral’s SaaS brokerage workflow

“FxGrow’s decision to partner with us is indicative of the growing advantage for brokers to leverage tier-one institutional-grade technology while maintaining control over their own platform. Integral is well-positioned to provide the SaaS solutions that will enable these businesses to better compete in the market.”

<