EIA Drilling Productivity Report Update – Aug ’16
According to the EIA’s August Drilling Productivity Report, U.S. oil output is expected to continue to decline through Sep ’16. The Drilling Productivity Report uses recent data on the total number of drilling rigs in operation, estimates of drilling productivity, and estimated changes in production from existing wells to provide estimated changes in oil production for the seven key regions shown below. The seven regions analyzed have accounted for 95% of domestic oil production growth from 2011-2013.
Aug ’16 production was revised slightly higher from the previous month but is expected to remain 112,000 bpd, or 2.4%, below Jul ’16 production levels. Sep ’16 production is expected to decline an additional 85,000 bpd, or 1.9%, from the Aug ’16 revised production levels to 4.47 million bpd, a 29 month low and 14.9% below the previous year.
Projected MOM declines in oil production have been exhibited over ten consecutive months through Sep ’16. The Sep ’16 projected declined in oil production was the smallest experienced over the past four months, however.
Projected MOM declines in oil production continue to be led by the Eagle Ford, Bakken and Niobrara regions. The aforementioned regions are expected to experience MOM production declines of 53,000 bpd (4.9%), 26,000 bpd (2.7%) and 7,000 bpd (1.9%), respectively in Sep ’16. Projected MOM declines in oil production were widespread across other major growth areas during Sep ’16 with the exception of the Permian region, which is projected to increase production by 0.2% throughout the month.
Aug ’16 production was revised slightly higher from the previous month but is expected to remain 112,000 bpd, or 2.4%, below Jul ’16 production levels. Sep ’16 production is expected to decline an additional 85,000 bpd, or 1.9%, from the Aug ’16 revised production levels to 4.47 million bpd, a 29 month low and 14.9% below the previous year.
Projected MOM declines in oil production have been exhibited over ten consecutive months through Sep ’16. The Sep ’16 projected declined in oil production was the smallest experienced over the past four months, however.
Projected MOM declines in oil production continue to be led by the Eagle Ford, Bakken and Niobrara regions. The aforementioned regions are expected to experience MOM production declines of 53,000 bpd (4.9%), 26,000 bpd (2.7%) and 7,000 bpd (1.9%), respectively in Sep ’16. Projected MOM declines in oil production were widespread across other major growth areas during Sep ’16 with the exception of the Permian region, which is projected to increase production by 0.2% throughout the month.