U.S. Shale Output Drop Seen for 10th Straight Month in September
U.S. shale oil production is expected to fall for a tenth consecutive month in September, according to a U.S. government forecast released on Monday, as low oil prices continue to weigh on production.
Total output is expected to drop 85,000 bpd to 4.47 million bpd, according to the U.S. Energy Information Administration’s drilling productivity report. That is the lowest output number since April 2014.
The EIA’s previous forecast calling for an output decline in August of 99,000 bpd was revised up to nearly 112,000 bpd, data shows.
Bakken production from North Dakota is expected to fall 26,000 bpd, while production from the Eagle Ford formation is expected to drop 53,000 bpd. Production from the Permian Basin in West Texas is expected to rise 3,000 bpd, according to the data.
Total natural gas production, meanwhile, is forecast to decline for a seventh consecutive month in September to 45.4 billion cubic feet per day (bcfd), the lowest level since May 2015, the EIA said.
The Eagle Ford is forecast to drop 0.2 bcfd from August to 5.6 bcfd. September output in the Marcellus formation, the biggest U.S. shale gas field, was expected to ease by less than 0.1 bcfd from August to 17.8 bcfd.
