The biggest U.S. shale regions are expected to produce a record-high level of crude oil in July, but growth is sputtering and set to be the slowest since December 2022, data from the Energy Information Administration showed on Monday.
The seven main shale-producing regions in the United States are expected to pump 9.375 million barrels per day (bpd) of crude oil next month, a record high, according to estimates in the EIA’s Drilling Productivity Report.
While output could reach an all-time high, it would be only 8,000 bpd higher than the estimated June crude oil production of 9.367 million bpd.
The Permian, the top-producing region, is set to see only a 1,000-bpd increase in output, although July production is expected at a record 5.763 million bpd. The rise in output would be the smallest in the Permian since February 2023.
The Bakken region will lead the gains with crude oil production set to rise by 7,000 bpd from June to 1.214 million bpd in July. The estimated production from the shale basin in North Dakota and Montana would be the highest since November 2020, according to EIA’s forecasts.
While small gains are expected in the other regions, the Eagle Ford is expected to see its crude oil production drop by 5,000 bpd to 1.117 million bpd, which would be the lowest output level since April 2023.
In natural gas output, the Permian will lead gains in July, followed by the Bakken and Appalachia, while output in the Anadarko and Eagle Ford basins is set to decline next month compared to June, according to the EIA estimates.
Over the past five weeks, the total number of active drilling rigs in the United States has dropped by 53, Baker Hughes data showed on Friday. The total rig count fell to 695 last week—38 rigs below this time last year. The current count is 380 fewer rigs than the rig count at the beginning of 2019, prior to the pandemic.
By Tsvetana Paraskova for Oilprice.com
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