US shale oil production is expected to increase by a mere 1,000 b/d from March to April, according to the Energy Information Administration’s Drilling Productivity Report (DPR), signifying a slowdown in growth caused by reduced company budgets and a shrinking rig count.
Total oil output from the most prolific shale areas in the Lower 48—the Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara, Permian, and Utica—will remain virtually unchanged at 5.6 million b/d in April.
The DPR focuses on those seven plays, which accounted for 95% of US oil production increases and all US natural gas production increases during 2011-13.
April growth will be pushed down by declines of 10,000 b/d in the Eagle Ford to 1.7 million b/d, 8,000 b/d in the Bakken to 1.3 million b/d, and 5,000 b/d in the Niobrara to 413,000 b/d. Production from the Permian, meanwhile, will expand 21,000 b/d to nearly 2 million b/d.
Baker Hughes Inc.’s most recent US oil rig count stood at 922, down 653 units since Dec. 5 (OGJ Online, Mar. 6, 2015). During that time, the Eagle Ford lost 61 oil rigs to 129 while the Niobrara lost 20 oil rigs to 23. The Permian lost 233 oil rigs to 328.
US gas production will expand 221 MMcfd from March to April, totaling 46.2 bcfd. The only declines will take place in the Niobrara and Bakken, respectively falling 15 MMcfd and 8 MMcfd.