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OIL PRODUCTION UP 79,000 PER DAY
SEPTEMBER NEWSLETTER 4
GOAL IS SMOOTH
Between September of 2017 and September of 2018, U.S. crude oil production from seven major shale regions is forecast to have risen by 1.7 million barrels of oil per day to 7.52 million barrels a day. The month-over-month increase from September to October 2018 is expected to total 79,000 barrels a day.
The forecast was published Monday by the U.S. Energy Information Administration (EIA) in its monthly Drilling Productivity Report. Total production in October is forecast to reach 7.59 million barrels a day.
In June the number of drilled but uncompleted (DUC) wells rose by 193 to a total of 7,943, including 164 new wells in the Permian Basin.
In July the number of DUC wells rose by 165 to a total of 8,033, including 167 new wells in the Permian Basin.
In August the number of DUC wells rose by 238 to a total of 8,269, including 211 new wells in the Permian Basin.
No overall oil production declines are forecast either for September or October, although production from new wells is expected to decrease by five barrels per day per rig to 641 in October.
Natural gas production is expected to increase by 961 million cubic feet per day month over month in October. Production in the Permian Basin is expected to rise by 239 million cubic feet in the month. Haynesville gas production is forecast to rise by 134 million cubic feet per day, and Niobrara production is expected to be up by 50 million cubic feet per day.
Benchmark West Texas Intermediate crude oil for October delivery traded Tuesday at $70.02 a barrel, up about 1.6% from Monday’s closing price of $68.91. October crude opened at $68.84 Tuesday morning.
Natural gas for October delivery traded Tuesday at $2.88 per million BTUs, up about 2.5% from Monday’s closing price of $2.81. October gas opened at around $2.82 Tuesday morning.