Shale Output to Fall per EIA | Russell T. Rudy Energy LLC
“Rigzone” reports that the U. S. Energy Information Administration (EIA) predicts production decreases for domestic shale oil and natural gas production. These reductions are in response to a global energy surplus which has driven down prices, and consequently investment, staffing levels, and rig counts.
The EIA predicts that by January, 2016, shale oil production will have dropped more than 600,000 barrels of oil per day (bopd) from the March, 2015 peak. The three largest shale plays in the U. S. will all be affected, but not equally. North Dakota’s Bakken shale is expected to drop 27,000 bopd. The Eagle Ford of South Texas will likely see production levels fall off 77,000 bopd. However, the Permian Basin of West Texas is projected to increase by 14,000 bopd.
By January, 2016, the EIA foresees domestic natural gas production dropping for the sixth month in a row. Output is expected to decrease by .4 billion cubic feet per day (bcfd) to 44 bcfd, the lowest level since January, 2015. The biggest projected decline will be in the Marcellus shale of Pennsylvania and West Virginia where production is expected to fall .2 bcfd to 15.5 bcfd. This would mark two straight months of decreasing production in the Marcellus. Such a drop has not been seen since 2008.
To read the article in its entirety, please go to http://www.rigzone.com/news/oil_gas/a/142000/EIA .
