According to the U.S. Energy Information Administration (EIA), oil production from the top shale-producing regions in the United States is set to decrease for a third consecutive month in October. This decline would bring oil output to its lowest level since May 2023. The EIA’s monthly Drilling Productivity Report revealed that U.S. oil output is projected to fall to 9.393 million barrels per day (bpd) in October, compared to 9.433 million bpd in September. It is worth noting that a record high of 9.476 million bpd was reached in July.
The anticipated decline of approximately 41,000 bpd would be the largest drop in monthly oil output since December. The Permian Basin, located in Texas and New Mexico and the largest shale oil basin in the United States, is expected to witness a decrease of nearly 26,000 bpd to reach 5.773 million bpd. This would mark the lowest level since April. Additionally, crude production in the South Texas Eagle Ford region is projected to fall by 17,000 bpd to 1.109 million bpd, the lowest level since December 2022.
However, there is some positive news in the Bakken region of North Dakota and Montana, as oil production is estimated to increase by about 3,000 bpd to reach 1.227 million bpd, the highest level recorded since November 2020.
This decline in U.S. shale oil output can be attributed to various factors, including the ongoing impact of the COVID-19 pandemic on global oil demand, supply chain disruptions, and uncertainties surrounding oil prices. These challenges have led to a decrease in drilling activity and investment in shale oil production.
Overall, the decrease in U.S. shale oil output signifies a tightening supply of oil in the market, which may have implications for global oil prices and energy markets. It remains to be seen how this trend will evolve in the coming months and how it will impact the broader energy landscape.
Sources:
– U.S. Energy Information Administration (EIA)
– Reuters