• 6 hours Thanksgiving Gas Prices At 3-Year High
  • 10 hours Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 12 hours South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 15 hours Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 16 hours Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 17 hours Iraq Steps In To Offset Falling Venezuela Oil Production
  • 19 hours ConocoPhillips Sets Price Ceiling For New Projects
  • 3 days Shell Oil Trading Head Steps Down After 29 Years
  • 3 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 4 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 4 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 4 days Venezuela Officially In Default
  • 4 days Iran Prepares To Export LNG To Boost Trade Relations
  • 4 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 4 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 4 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 4 days Rosneft Announces Completion Of World’s Longest Well
  • 5 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 5 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 5 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 5 days Santos Admits It Rejected $7.2B Takeover Bid
  • 5 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 5 days Africa’s Richest Woman Fired From Sonangol
  • 5 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 6 days Russian Hackers Target British Energy Industry
  • 6 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 6 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 6 days Lower Oil Prices Benefit European Refiners
  • 6 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 7 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 7 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 7 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 7 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 7 days OPEC To Recruit New Members To Fight Market Imbalance
  • 7 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 7 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 7 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 7 days GE Considers Selling Baker Hughes Assets
  • 8 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 8 days Saudi Aramco To Invest $300 Billion In Upstream Projects

Breaking News:

Thanksgiving Gas Prices At 3-Year High

Fuel Crisis Hits Kazakhstan Hard

Fuel Crisis Hits Kazakhstan Hard

Amid an ongoing fuel crisis,…

Bahrain Security Forces Foil Attacks On Three Oil Pipelines

Bahrain Security Forces Foil Attacks On Three Oil Pipelines

Bahrain’s security forces have prevented…

Cold Weather Cuts into Oil and Gas Production

Cold Weather Cuts into Oil and Gas Production

The U.S. will produce slightly less oil and gas this year than previously expected after a brutal winter dumped snow on much of the country. The bad weather delayed the completion of oil and gas wells and forced companies to cut back on drilling. The U.S. Energy Information Administration projects that total U.S. oil production will be 120,000 barrels per day lower than it would have been.

Rig counts are also down for the second straight week, having dropped by a total of 21 in February alone. That brings the total rig count to 1,764.

Related Article: Big Oil Sheds Assets to Fix Balance Sheets

Yet, in its Short Term Energy Outlook, the EIA still forecasts a dramatic increase in oil production this year and next. U.S. oil production will rise from 7.4 million barrels per day (bpd) in 2013 to 8.4 million bpd in 2014. And 2015 will see slightly slower growth but still significant gains, with production rising to 9.2 million bpd. If that occurs, oil imports will drop to 25% of consumption, their lowest levels since 1971, and down from a high of 60% in 2005.

EIA’s latest report on drilling productivity also shows drillers making efficiency gains in the Bakken and Eagle Ford Shales. For example, the average rig in the Bakken produces 8 more barrels per day from a new well than it did last year, and in the Eagle Ford that number reaches 14 barrels per day. This indicates that drillers are still squeezing out some efficiency gains as they gain experience. That is important because the natural decline of these regions is also increasing. The initial spike in production from an average shale well is followed by rapid decline. EIA forecasts that the decline of legacy wells will be greater in March 2014 than it was in the same month last year.

By Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News