U.S. Energy Information Administration said last week U.S. oil production fell in January by 2 percent to its lowest since September 2021. Oil production fell to 11.4 million barrels per day in January from 11.6 million b/d the previous month. EIA said production in Texas declined to 4.9 million b/d in January – lowest since August 2021 – and production in New Mexico fell to 1.3 million b/d – lowest since July 2021. Reuters reported, “Shale producers have responded more slowly than during previous price rises as investors and shareholders have demanded greater capital discipline from the industry than in previous boom-bust cycles.”
EIA also reported a decline in monthly gross natural gas production in U.S. lower 48 of 2.9 billion cubic feet per day to 105.6 bcfd in January – lowest since September 2021. That included declines of 2 percent in Texas to 29.7 bcfd and 3.1 percent in Pennsylvania to 21.3 bcfd.