US shale output expected to rise for eighth straight month
On Monday, the US Energy Information Administration projected US shale production would increase in August to 5.585 million barrels per day (b/d), up 112,000 b/d.
Should the estimate from the agency’s monthly drilling report prove true, US shale output will be at its highest level since record-keeping began in 2007.
According to the EIA, the Permian Basin is expected to produce 2.535 million b/d, up by 64,000 b/d in July.
In the Eagle Ford play, production is expected to jump by 27,000 b/d to 1.387 million b/d, the highest since February 2016. And in the Bakken, output is expected to rise by 3,500 b/d to 1.043 million b/d, the highest since November.
US natural gas output is also set to increase for the eighth straight month.
Gas production is expected to increase from June reports by 0.8 billion cubic feet per day (bcfd) to a record 52.9 bcfd next month.
The EIA says gas output is expected to rise in all big shale basins in August, with the biggest increase anticipated from the Marcellus formation. Output from the formation in Pennsylvania and West Virginia is set to climb by 19.8 bcfd next month, the fifth straight increase.
The number of drilled uncompleted wells (DUCs) in the biggest shale basins rose by 154 in June over May. In total, there are 6,031 DUCs on record, the highest ever.
