Posted on 10/14/2015 10:13:30 AM PDT by thackney
Drillers in a few of the biggest shale plays in the country are set to scale back their oil production dramatically next month, according to the U.S. Energy Information Administration’s forecast released Tuesday.
The EIA said in its Drilling Productivity Report that overall U.S. oil production would fall 93,000 barrels per day to 5.12 million bpd total in November, the largest decrease recorded in the agency’s data going back to 2007. The drop would also mark the seventh-straight month of production pullbacks.
Three of the largest U.S. shale plays — the Eagle Ford, Bakken and Niobrara — together could lose a little over 114,500 bpd in November. The Eagle Ford in South Texas is projected to lose about 70,950 bpd. The Bakken, located in North Dakota and Montana, will lose about 23,200 bpd, and the Niobrara, mostly in Colorado, will lose about 20,400 bpd.
The cut backs will be steepest in the Eagle Ford and Niobrara plays — the losses there represent about 5 percent of those plays’ total production each.
Producers have been quicker to pull out of the Eagle Ford, which has seen 282,500 bpd of production wiped out since January. Drillers there need about $65 oil to break even, according to analysts at Tudor Pickering & Holt in Houston. West Texas Intermediate, the U.S. benchmark crude, peaked this year at $61.43 on June 10, before crashing below $40 in late August.
The Permian was the only shale play that the EIA said could add a significant amount of production next month, about 21,000 bpd.
Drilling Productivity Report
http://www.eia.gov/petroleum/drilling/pdf/dpr-full.pdf
October 2015
Yet the Saudi’s are pumping at full tilt. Guess this was the plan.
It’s an economic war, and we lost.
‘It’s an economic war, and we lost.’
That oil and technology ain’t going anywhere, so how is it that we ‘lost’?
If....If we could sell our oil on the open market production would not be dropping this fast. But alas, Obama and his Muslim brothers will not allow that to happen
Idiot writer makes it sound like the fall in production is discretionary. It is not. The wells are going dry. It is natural cliff like shale production decline and depletion.
Ever hear of a depletion allowance?
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