U.S. Energy Information Administration forecasts that oil production will grow by 5,000 b/d in December in the Permian Basin to 5.981 million b/d from 5.976 million b/d in November. Oil production for November was revised upward by EIA from its original forecast Oct. 16 of 5.901 million b/d. Production for October was 5.931 million b/d of oil. EIA said in its latest drilling productivity report Monday that overall oil production in seven major regions is forecast to decline slightly next month to 9.653 million b/d from 9.654 million b/d in November. Eagle Ford in south Texas is forecast to decline by 3,000 b/d of oil to 1.151 million b/d in December.
Production of natural gas also is forecast by EIA to decline in December. EIA expects natural gas production of 99.638 billion cfd next month in seven regions – down 299 million cfd from 99.937 billion cfd in November. Gas production in Permian Basin is forecast to grow by 113 million cfd to 24.858 billion cfd in December. Gas production leader Appalachia is expected to decline to 35.764 billion cfd in December after 35.953 billion cfd in November.
Five of the seven regions have more than 700 DUC wells (drilled but uncompleted) each. Permian Basin leads with 832 DUC wells in October – down 11 from 843 in September. Across the seven regions, there were 4,524 DUC wells in October after 4,616 in September. Haynesville in Louisiana and east Texas was the only region reporting additional DUC wells in October (751 after 749 in September).