EIA: July Crude Production to Fall by 118,000 Barrels a Day

Energy

Published: June 13, 2016 3:53 pm

Last Updated: January 13, 2020 6:51 am

The U.S. Energy Information Administration (EIA) on Monday released its June report on drilling productivity in seven key oil and gas producing regions of the U.S. Overall oil production is projected to decline by 118,000 barrels per day from 4.841 million barrels per day in June to 4.723 million barrels per day in July. Total production in May reached 4.962 million barrels a day.

New well production is expected to fall from an estimated 564,000 barrels a day in June to 557,000 barrels a day in July.

The largest decline is forecast for the Eagle Ford play in South Texas where production is expected to slip by 63,000 barrels a day. Production in the Bakken play in North Dakota and Montana is expected to drop by 32,000 barrels a day and Niobrara production is pegged to fall by 14,000 barrels a day. Production from the Permian Basin is forecast to fall by 7,000 barrels a day and the output from the Haynesville and Marcellus shale plays is expected to drop by 1,000 barrels per day in each region. No change is expected at the Utica shale play.

Natural gas production is expected to drop by 476 million cubic feet per day with Eagle Ford production down the most (211 million cubic feet per day). Utica shale gas production is forecast to decline by 4 million cubic feet per day.

WTI crude oil for July delivery closed Monday at $48.88 a barrel, down 0.9% from Friday’s closing price of $49.07 on Friday.

Natural gas for July delivery traded up about 1.4% to close at $2.59, up three cents from Friday’s closing price.

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