EIA Drilling Productivity Report Update – Jul ’16
According to the EIA’s July Drilling Productivity Report, U.S. oil output is expected to continue to decline through Aug ’16. The Drilling Productivity Report uses recent data on the total number of drilling rigs in operation, estimates of drilling productivity, and estimated changes in production from existing wells to provide estimated changes in oil production for the seven key regions shown below. The seven regions analyzed have accounted for 95% of domestic oil production growth from 2011-2013.
Jul ’16 production was revised lower by approximately 70,000 barrels per day (bpd), or 1.5%, and is expected to remain 118,000 bpd, or 2.5%, below Jun ’16 production levels. Aug ’16 production is expected to decline an additional 99,000 bpd, or 2.1%, from the Jul ’16 revised production levels to 4.55 million bpd, a 27 month low and 14.0% below the previous year.
Projected MOM declines in oil production have been exhibited over ten consecutive months through Aug ’16. The Aug ’16 projected declined in oil production was the second smallest experienced over the past five months, however.
Projected MOM declines in oil production continue to be led by the Eagle Ford, Bakken and Niobrara regions. The aforementioned regions are expected to experience MOM production declines of 48,000 bpd (4.3%), 32,000 bpd (3.2%) and 12,000 bpd (3.1%), respectively in Aug ’16. Projected MOM declines in oil production were widespread across other major growth areas during Aug ’16.
Jul ’16 production was revised lower by approximately 70,000 barrels per day (bpd), or 1.5%, and is expected to remain 118,000 bpd, or 2.5%, below Jun ’16 production levels. Aug ’16 production is expected to decline an additional 99,000 bpd, or 2.1%, from the Jul ’16 revised production levels to 4.55 million bpd, a 27 month low and 14.0% below the previous year.
Projected MOM declines in oil production have been exhibited over ten consecutive months through Aug ’16. The Aug ’16 projected declined in oil production was the second smallest experienced over the past five months, however.
Projected MOM declines in oil production continue to be led by the Eagle Ford, Bakken and Niobrara regions. The aforementioned regions are expected to experience MOM production declines of 48,000 bpd (4.3%), 32,000 bpd (3.2%) and 12,000 bpd (3.1%), respectively in Aug ’16. Projected MOM declines in oil production were widespread across other major growth areas during Aug ’16.