Crude oil production in seven major regions in U.S. is expected to fall to levels not seen since 2018 as operators respond to the price collapse and oversupply. Led by declines in Permian Basin, production next month is expected to fall by 197,000 barrels per day to 7.822 million b/d, according to U.S. Energy Information Administration. Output in Permian is forecast to fall in June by 87,000 b/d to 4.29 million b/d. Six of the seven regions will decline (Appalachia will be unchanged).
Production of natural gas is forecast in the Drilling Productivity Report to decline in each of the seven regions, including down in June by 210 million cubic feet per day in Permian to 15.839 billion cfd. Anadarko is expected to decline by 244 million cfd. Appalachia remains the production leader for natural gas with June forecast of 32.593 billion cfd (down 85 million cfd from May).
Five of the seven regions reported an increase in drilled but uncompleted (DUC) wells in April. Permian added 28 to reach 3,464 DUC wells. Across the U.S., there were an additional 13 DUC wells in April for a new total of 7,617.