EIA Drilling Productivity Report Update – Jul ’15
According to the EIA’s July Drilling Productivity Report, U.S. oil output is expected to continue to decline through Aug ’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. Jul ’15 shale production was revised lower by approximately 38,000 barrels per day (bpd), or 0.7%, and is expected to finish approximately 81,000 bpd, or 1.5%, below Jun ’15 production levels. Aug ’15 production is expected to decline an additional 91,000 bpd, or 1.7%, from Jul ’15 revised production levels to 5.36 million bpd, a nine month low. The projected MOM declines in oil production from May ’15 – Aug ’15 have been the largest experienced in over four years, with the projected Aug ’15 decline being the 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 3.5%, 1.8% and 4.7%, respectively in Aug ’15. Growth is expected to continue within the Permian, Marcellus and Utica regions, with projected production up 0.2%, 0.2% and 2.0% MOM, respectively, in Aug ’15.