Permian production forecast to decline to 4.315 million b/d in March

Production of oil and natural gas is expected to decline again this month in seven U.S. major producing regions, according to the latest drilling productivity report from the U.S. Energy Information Administration. Across the seven regions, oil production is forecast to decline by 77,000 b/d in March to 7.504 million b/d from 7.581 million b/d in February. That includes a decline of 5,000 b/d in Permian Basin to 4.315 million b/d in March from 4.320 million b/d in February.

Natural gas output is forecast to be 82.026 billion cubic feet in March – down by 560 million cfd from 82.586 billion cfd in February. Only Haynesville is expected to increase production by 96 million cfd to 11.647 billion cfd. Gas production is expected to decline in Permian Basin by 50 million cfd to 16.753 billion cfd. Production in the leading gas-producing region, Anadarko, is forecast to decline by 260 million cfd to 34.250 billion cfd.

EIA said count of DUC wells (drilled but uncompleted) continues to fall. Permian Basin had 3,468 DUC wells in January – down from 3,506 in December. Across seven regions, there were 7,177 DUC wells in January after 7,336 in December.