EIA Drilling Productivity Report Update – Nov ’16
EIA Drilling Productivity Report Update – Nov ’16
According to the EIA’s November Drilling Productivity Report, U.S. oil output is expected to continue to decline through the end of 2016. 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.
Nov ’16 production was revised 2.0% higher than the previous month figures but is expected to remain 33,000 barrels per day (bpd), or 0.7%, below Oct ’16 production levels. Dec ’16 production is expected to decline an additional 20,000 bpd, or 0.5%, from the Nov ’16 revised production levels to 4.50 million bpd, a 32 month low and 12.2% below the previous year.
Projected MOM declines in oil production have been exhibited over 11 of the past 12 months through Dec ’16. The Dec ’16 projected declined in oil production was the smallest experienced over the past five months, however.
Projected MOM declines in oil production continue to be led by the Eagle Ford and Bakken regions. The aforementioned regions are expected to experience MOM production declines of 33,000 bpd (3.2%) and 14,000 bpd (1.5%) respectively during Dec ’16. Declines within the Eagle Ford and Bakken regions are expected to more than offset continued production gains within the Permian region. The Permian region is expected to experience a 27,000 bpd (1.3%) increase in production during Dec ’16 as production is expected to continue to reach new record high levels.
Nov ’16 production was revised 2.0% higher than the previous month figures but is expected to remain 33,000 barrels per day (bpd), or 0.7%, below Oct ’16 production levels. Dec ’16 production is expected to decline an additional 20,000 bpd, or 0.5%, from the Nov ’16 revised production levels to 4.50 million bpd, a 32 month low and 12.2% below the previous year.
Projected MOM declines in oil production have been exhibited over 11 of the past 12 months through Dec ’16. The Dec ’16 projected declined in oil production was the smallest experienced over the past five months, however.
Projected MOM declines in oil production continue to be led by the Eagle Ford and Bakken regions. The aforementioned regions are expected to experience MOM production declines of 33,000 bpd (3.2%) and 14,000 bpd (1.5%) respectively during Dec ’16. Declines within the Eagle Ford and Bakken regions are expected to more than offset continued production gains within the Permian region. The Permian region is expected to experience a 27,000 bpd (1.3%) increase in production during Dec ’16 as production is expected to continue to reach new record high levels.