EIA Drilling Productivity Report Update – Jun ’15
According to the EIA’s June Drilling Productivity Report, U.S. oil output is expected to continue to decline through Jul ’15. 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. Jun ’15 shale production was revised lower by approximately 20,000 barrels per day (bpd), or 0.4%, and is expected to finish approximately 72,000 bpd, or 1.3%, below May ’15 production levels. Jul ’15 production is expected to decline an additional 93,000 bpd, or 1.7%, from Jun ’15 revised production levels to 5.49 million bpd, a seven month low. The projected MOM declines in oil production throughout May – Jul ’15 would be the first experienced since Feb ’11, with the projected Jul ’15 decline being the largest experienced since the report was originated in 2007. Projected MOM declines in oil production were led by the Eagle Ford, Bakken and Niobrara regions. The aforementioned regions are expected to experience MOM production declines of 3.0%, 2.3% and 4.0%, respectively in Jul ’15. Growth is expected to continue within the Permian and Utica regions, with projected production up 0.2% and 0.9% MOM, respectively, in Jul ’15.