Natural gas production in the U.S.’s seven biggest unconventional basins is expected to drop in June, with volumes declining in all producing regions, Kallanish Energy reports.
The latest data from the U.S.’s Energy Information Administration (EIA) show gas production in the Anadarko, Appalachian and Permian basins, and the Bakken, Eagle Ford, Haynesville and Niobara formations will fall by 779 million cubic feet per day (Mmcf/d) or 1% month-on-month in June.
EIA’s Drilling Productivity Report estimates production next month to be at 81.47 billion cubic feet per day (Bcf/d), compared to 82.24 Bcf/d in May. The Anadarko basin is set to see the biggest decline of 244 Mmcf/d to 15.83 Bcf/d.
Other major declines will be seen in the Permian and the Eagle Ford. Production at the former play is projected to drop by 210 Mmcf/d to 15.83 Bcf/d, while at the latter to fall by 126 Mmcf/d to 6.48 Bcf/d.
The most prolific shale gas play, the Appalachia, should see a decline of 85 Mmcf/d, leading to a production of 35.59 Bcf/d next month.
Drilled but uncompleted (DUC) well counts across the so-called Big Seven ended April at 7,617 — an increase of 13 from March, the EIA said. The productivity of new gas wells in these plays is expected to increase by 657 thousand cubic feet per day in June to 4.52 Mmcf/d.
Analytical firm GlobalData said Tuesday the outlook for the U.S. natural gas industry will remain bleak through 2020, as despite production declines, the market is still oversupplied. (See related story
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