EIA Drilling Productivity Report Update – May ’16
According to the EIA’s May Drilling Productivity Report, U.S. oil output is expected to continue to decline through Jun ’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. May ’16 production was revised higher by approximately 89,000 barrels per day (bpd), or 1.8%, but is expected to remain 110,000 bpd, or 2.2%, below Apr ’16 production levels. Jun ’16 production is expected to decline an additional 112,000 bpd, or 2.3%, from the May ’16 revised production levels to 4.81 million bpd, a 24 month low and 10.6% below the previous year. Projected MOM declines in oil production have been exhibited over 11 of the past 12 months through Jun ’16. The Jun ’16 projected declined in oil production was the second largest experienced since the report was originated in 2007. 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 58,000 bpd (4.6%), 28,000 bpd (2.6%) and 15,000 bpd (3.6%), respectively in Jun ’16. Projected MOM declines in oil production were widespread across other major growth areas during Jun ’16.