Posted on 05/12/2015 4:37:48 AM PDT by thackney
Oil production from the Bakken and Eagle Ford shale plays look like they’ve peaked and other shale plays may not be far behind.
Oil production from seven major U.S. shale plays is expected to fall by a total of 86,000 barrels a day in June, according to a monthly report from the Energy Information Administration released Monday. The previous report released a month ago also showed a forecast for a fall of 57,000 barrels a day in May.
Oil output at the Eagle Ford shale play in South Texas is forecast to see the biggest decline, down 47,000 barrels a day in June. The Bakken shale play, which stretches from Canada into North Dakota and Montana, is expected to see output fall by 31,000 barrels a day, the report said. That would follow forecast declines in both regions for the month of May.
“The data shows that production in the Bakken and Eagle Ford [plays] peaked in March at 1.33 million barrels a day and 1.73 million barrels a day, respectively,” said James Williams, energy economist at WTRG Economics.
(Excerpt) Read more at marketwatch.com ...
That’s crazy. Here in GA in the 90’s, fuel prices went up so everyone and their uncle went out and bought diesel trucks so the local market jacked up Diesel prices to reflect the surge in demand.
Diesel reached parity with regular gasoline here last week
The price at Sam’s for both was $2.34 per gallon last Friday
My van murmured appreciation as I filled the tank
can you zoom in on the last couple of years and plot this production history against the # wells drilled and the # of uncompleted wells?
I think we will find this interesting.
*sigh* I hate the EPA.
“I wonder how much of that decline is due to the oil price plunging over the past year, thus putting some wells out of business for the time being.”
You may misunderstand how this works:
The response to oil price in this case is not shutting in wells so one loses production. Once drilled, these wells certainly make enough money to cover their operating costs so are not shutin, save on rare occasions.
Instead, what happens in the decline of oil prices is that fewer new wells are drilled and completed. The newer wells have much higher production characteristics than already producing wells, so the impact on production is large.
These newer wells will ultimately be drilled at some time in the future, so nothing is really ‘lost’, just delayed.
I don’t know a source that charts uncompleted wells. Only a couple of articles that gives totals without much/any breakdown.
“It’s too bad Diesel will never fall below the price of Regular again.”
The feds tax diesel more, so that is a very significant item as why it may not.
BTW, the feds want to raise it even more.
ok, just the engineer in me trying to take the data to a new place of understanding.
Yep, I would like to see that data as well.
Do you have a source that charts “rate of well completions”?
If so, the rate-of-dropoff of completions could be used to estimate a “number of wells not completed”.
No.
“I wonder how much of that decline is due to the oil price plunging over the past year, thus putting some wells out of business for the time being.”
100%
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