U.S. Energy Information Agency expects another record month for crude oil production in Permian Basin. In its Dec. 13 drilling productivity report, EIA forecast production of 5.031 million barrels of crude oil per day in January 2022 – the second straight month for a record forecast and the first monthly forecast of at least 5 million b/d. That’s up by 71,000 b/d from record 4.960 million b/d in December 2021. Overall production in seven major regions is expected to grow by 96,000 b/d to 8.438 million b/d in January (Permian provides 74 percent of growth). Bakken will add 8,000 b/d to reach 1.154 million b/d, and Eagle Ford will add 13,000 b/d to reach 1.103 million b/d.
“The 96,000 b/d (growth) is mostly due to more rigs, especially in the Permian, but also in the Eagle Ford and Bakken,” EIA analyst Jozef Lieskovsky told reporters. “We are slowly adding rigs. In the Permian we estimate now to be drilling 300 new wells per month.” He said the laterals of 5,000-to-7,000 feet from 7 or 8 years ago now are 10,000 feet and in some cases 13,000-to-14,000 feet. And it takes less downtime to move rigs to new locations.
Production of natural gas is expected to increase by 341 million cubic feet per day in January 2022 from December to 89.346 billion cfd. Permian Basin is expected to grow by 115 million cfd to 19.688 billion cfd, and Appalachia is forecast to add 78 million cfd to lead with 34.903 billion cfd.
EIA said the number of DUC wells (drilled but uncompleted) fell below 5,000 for the first time since November 2014. There were 4,855 DUC wells in November in seven major regions after 5,081 in October. Permian led with 1,564 DUC wells in November – down 105 from 1,669 DUC wells in October.