Posted on 01/11/2016 1:52:00 PM PST by thackney
U.S. shale oil production is expected to fall for a seventh month in a row in February, declining at about the same rate as the month before as drillers manage to eke out a few more barrels from each new well, U.S. data showed on Monday.
Total output was set to decline by 116,000 bpd to 4.8 million bpd in February compared with January, a U.S. Energy Information Administration's (EIA) drilling productivity report said.
Production was estimated to have fallen by about the same margin in January, despite some expectations that the decline rate would begin to quicken as companies slash spending.
If true, the decline would take U.S. shale output to 638,000 bpd below the March 2015 peak, a far slower drop than many analysts had expected just a few months ago. Shale firms' resilience in the face of crashing crude oil markets has added to the selloff, pushing prices to near 13-year lows this week.
Bakken production from North Dakota and Montana was set to fall 24,000 bpd, while production from the Eagle Ford in South Texas was expected to fall 72,000 bpd.
But some regions were still growing, 18 months into the oil slump. Production was forecast to rise by 5,000 bpd in the Permian Basin in West Texas and eastern New Mexico, the data showed....
Total natural gas output would decline for an eighth consecutive month in February to 43.7 billion cubic feet per day (bcfd), the lowest level since February 2015. That would be down over 0.4 bcfd from January, making it the biggest monthly decline since January 2015, according to the EIA data....
Drilling Productivity Report
http://www.eia.gov/petroleum/drilling/
Good Timing, just discussing US production in another thread.
I think this great news for consumers. Oil prices aren’t going up anytime in the few years.
You think it is good for consumers to be buy more imported oil from other nations?
You think that is a long term advantage for the American Consumer?
I’d be happy to see the Saudi’s going back to being goat ropers.
That’s the problem with our nation...it is becoming a nation of only consumers while producers are getting screwed. Not a good thing in the long term...
The same was said about them going down just a couple of years ago too.
If the Middle East goes into turmoil all bets are off.
Are you not aware that we are still importing oil from our enemies in the Middle East, and they require that their oil be refined at the refineries they own in the USA?
It is a dirty shame that this hateful president made sure he guaranteed that we will import Iranian oil in his sell-out nuclear deal with Iran, thus helping our enemies and hurting Middle Class Americans working in our domestic oil and gas industry. If you think this is fair, you aren’t a patriot.
What am I missing? Why then is total US oil production holding on so stubbornly at 9.1 to 9.2 mmbo/d?
http://www.eia.gov/petroleum/weekly/crude.cfm#tabs-production-production
Down from 9.6 mmbpd peak last year
and they require that their oil be refined at the refineries they own in the USA?
False
Unless we have a MAJOR change in US Energy Policy, this is reality. WE have oil in the ground and we know how to get it out of the ground for about $35-40 per barrel to make a profit.
OPEC/Saudi Arabia is intent on driving fracking out of business. It won’t go out of business. WE know where the oil is and know how to get it out at $35 a barrel. Oil prices should stay at this price for the foreseeable future.
If the US producers figure out how to get it out of the ground for $20 per barrel and make a profit, they will produce and drive the price down further.
Until the Oil Commodity market is blown up and we cannot use supertankers, we are where we are.
It’s always good for consumers to pay less.
The world has changed. There is so much oil available at low prices that even turmoil in the Middle East would not raise prices more than about 10%.
If there is turmoil in the Middle East, the countries with lots of oil would sell as much as possible at pretty much any price above the variable cost in the short term.
The U.S. is importing less oil. Anytime a consumer pays less, it is a good thing even if imports are higher.
Whatever production cuts there have been in the U.S., they can be brought back on line in short order.
...a report that arrived just before the latest big price drop. February production might decline more than estimated.
Imports are rising with the falling US production.
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