Crude oil production in seven major regions of U.S. is forecast to be up by 16,000 barrels per day in May to 9.863 million barrels per day, according to the latest drilling productivity report from U.S. Energy Information Administration. EIA expects production in Permian Basin to increase by 12,000 barrels per day in May to 6.167 million b/d after 6.155 million b/d in April. Production is also expected to grow in Eagle Ford in south Texas (by 5,000 b/d to 1.164 million b/d) and Bakken.
EIA said the May forecast of 6.167 million b/d in Permian would be the third highest monthly output on record. Reuters said production in these seven regions, which represents about three quarters of U.S. total production, is rising because of improved well productivity and rebounding activity after winter shut-downs.
Production of natural gas is forecast to decline to a four-month low of 99.944 billion cfd in May after 100.202 billion cfd in April. Permian and Bakken are the only regions forecast to add gas production in May. Permian is expected to be up by 140 million cfd to 25.243 billion cfd in May. Appalachia remains the leader with 36.062 billion cfd in May (down 137 million cfd from April).
EIA said the number of drilled but uncompleted wells (DUC) increased in seven regions to 4,522 in March from 4,513 in February. Permian added 4 DUC wells to reach 886 in March. Five of seven regions added DUC wells in March.