EIA report: Crude oil production to continue to decline in August

U.S. crude oil production from seven major shale plays is expected to decline by about 56,000 barrels per day in August to about 7.49 million b/d – the lowest in two years – according to Monday’s monthly drilling productivity report from the U.S. Energy Information Administration. The biggest decline is expected in Eagle Ford in south Texas, where output will fall by 23,000 b/d to 1.106 million b/d. Production in Permian Basin is forecast to fall for fifth straight month by 13,000 b/d to 4.147 million b/d.
U.S. natural gas production from seven regions is forecast to fall by 712 million cubic feet per day in August to 79.554 billion. Production of gas in Permian in August will be 15.391 billion cfd after 15.443 billion cfd in July. Gas production leader remains Appalachia despite falling in August by 210 million cfd to 32.713 billion cfd. Bakken in North Dakota and Montana is only region expected to add production of oil and gas in August.
Permian Basin added 49 drilled but uncompleted wells (DUC) in June to reach 3,488 DUC wells. The U.S. total of DUC wells is 7,659 after adding 35 in June.
And the EIA says wells continue to be more productive. New oil wells across seven regions are expected to average 805 b/d in July and 904 b/d in August.