US shale production in May to rise to 5.19 million b/d
US shale production is expected to show its biggest monthly increase in over two years this May, according to data released by the US Energy Information Administration on Monday.
After oil prices recovered to over $50/barrel, producers have upped their drilling activity. The EIA report says that in May, shale production will increase by 123,000 b/d up to 5.19 million b/d.
This is the highest monthly increase since February, 2015 and the highest monthly production level since November of 2015.
The EIA says it anticipates production in the Permian Basin to increase by nearly 76,000 b/d to 2.36 million b/d, which is a new record for the largest US shale play.
In the Eagle Ford area, output is expected to rise by 39,000 b/d to 1.22 million b/d, the third monthly increase.
However, the Bakken is expected to see a drop in production for the third month, down by 1,400 b/d to 1.02 million b/d.
As far as US natural gas production, the EIA anticipates output to increase to a record 50.1 billion cubic feet (bcfd) per day in May. That is boost of about 0.5 bcfd over April and the seventh monthly increase in a row.
The EIA says gas output is expected to increase in all of the big shale basins in May with output from the Marcellus formation to set a record high of 19.0 bcfd. In May of last year, Marcellus production was 18.0 bcfd.
According to the EIA report, in the largest shale basins, producers drilled 854 wells and completed 743. Drilled but uncompleted wells (DUCs) are up 111 to 5.512, the most since March of last year.