Permian Basin is the only one of seven major producing regions in U.S. expected to increase crude oil production next month by U.S. Energy Information Administration. In its latest drilling productivity report, EIA said Permian Basin is forecast to produce 4.292 million barrels of oil in April – up 11,000 b/d from 4.281 million b/d in March. Across all seven regions, production is forecast to decline by 46,000 b/d in April to 7.458 million b/d.
Bloomberg said, “More focused than ever on keeping spending in check, shale drillers haven’t been boring new wells fast enough to keep up with output declines in older ones. So next month their combined production will edge lower… That’s despite an oil price jump of more than 30 percent this year… Producers don’t seem to be in a rush to start another boom, and their backers aren’t either.”
Permian and Haynesville are the only regions forecast to increase production of natural gas in April. Permian is expected to add 21 million cfd in April to reach 17.041 billion cubic feet per day, and Haynesville is expected to add 119 million cfd to reach 12.126 billion cfd. In April the seven regions are forecast to decline by 316 million cfd to 82.589 billion cfd.
EIA said in its March 15 report the numbers of drilled but uncompleted wells also continue to decline. Permian DUC wells fell to 3,273 in February from 3,275 in January. Across the seven regions, there were 7,086 DUC wells in February after 7,188 in January.