EIA Drilling Productivity Report Update – Oct ’16
According to the EIA’s October Drilling Productivity Report, U.S. oil output is expected to continue to decline through Nov ’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.
Oct ’16 production was revised 1.2% higher than the previous month figures but is expected to remain 48,000 barrels per day (bpd), or 1.1%, below Sep ’16 production levels. Nov ’16 production is expected to decline an additional 29,000 bpd, or 0.6%, from the Oct ’16 revised production levels to 4.43 million bpd, a 32 month low and 15.6% below the previous year.
Projected MOM declines in oil production have been exhibited over 12 consecutive months through Nov ’16. The Nov ’16 projected declined in oil production was the smallest experienced over the past nine 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 35,000 bpd (3.5%), 21,000 bpd (2.1%) and 3,000 bpd (0.8%), respectively during Nov ’16. Projected MOM declines in oil production were widespread across other major growth areas during Nov ’16 with the exception of the Permian and Utica regions, which are projected to increase production by 1.5% and 0.1%, respectively throughout the month.
Oct ’16 production was revised 1.2% higher than the previous month figures but is expected to remain 48,000 barrels per day (bpd), or 1.1%, below Sep ’16 production levels. Nov ’16 production is expected to decline an additional 29,000 bpd, or 0.6%, from the Oct ’16 revised production levels to 4.43 million bpd, a 32 month low and 15.6% below the previous year.
Projected MOM declines in oil production have been exhibited over 12 consecutive months through Nov ’16. The Nov ’16 projected declined in oil production was the smallest experienced over the past nine 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 35,000 bpd (3.5%), 21,000 bpd (2.1%) and 3,000 bpd (0.8%), respectively during Nov ’16. Projected MOM declines in oil production were widespread across other major growth areas during Nov ’16 with the exception of the Permian and Utica regions, which are projected to increase production by 1.5% and 0.1%, respectively throughout the month.