All the job cuts, all the rig laydowns, all the cuts in capital expenditures by producers continue to negatively impact America’s oil and natural gas industry.
Overall crude oil production is projected to drop 93,000 barrels per day (BPD), from 5.36 million barrels per day (MMBPD) in August, to 5.27 MMBPD in September, Kallanish finds.
Total production in June reached 5.58 MMBPD, according to the U.S. Energy Information Administration’s Drilling Productivity Report for August. The monthly report examines production in the country’s seven most prolific plays, including the Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara, Permian and Utica.
New well production is expected to rise from an estimated 433,000 BPD this month, to 434,000 BPD in September. Production from new wells was pegged at 404,000 BPD in June.
Since June, total production has dropped 31,000 BPD and new production has risen by 30,000 BPD. The productivity report shows natural gas production from August to September is projected to fall by 261 million cubic feet per day (MMcf/d), to 44.90 billion cubic feet per day (Bcf/d), from a projected 45.16 Bcf/d.
Each of the seven major production areas will see its gas production fall from August to September, according to EIA.The largest month-to-month drop will be in the Eagle Ford Shale, where natural gas production will drop by 112 MMcf/d, to 6.86 Bcf/d, from 6.98 Bcf/d.
Even the mighty Marcellus will see its August-to-September gas production fall by 60 MMcf/d, to 16.37 Bcf/d, from 16.43 Bcf/d . The Marcellus continues to produce more than one-third of the U.S.’s natural gas., according to EIA data.
New well natural gas production will drop 13,000 cubic feet per day (Mcf/d), to 2.43 MMcf/d, from 2.44 MMcf/d, EIA projects.
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