US Shale Production Continues to Rise, Drilling Activity Falls
US tight oil production from the seven major shale formations is projected to rise 57K b/d m-o-m and 850K b/d y-o-y to a record of 8.97M b/d in November, according to the latest drilling productivity report by the US Energy Information Administration. The key region driving this growth continues to be the Permian, where output is estimated to increase for the tenth consecutive month to 4.61M b/d, up 63K b/d m-o-m, offsetting declines of 12K b/d and 13K b/d in Eagle Ford and Anadarko, respectively.
Of note, however, is that the total rig count in US shale formations has declined steadily on a monthly basis from 958 in November 2018 to 781 in September, the lowest since May 2017. Meanwhile, the drilled but uncompleted wells are also continuing to fall, dropping by 206 m-o-m to 7,740 in September, which was the largest monthly decline since 2014.
By early afternoon in London, ICE Brent was trading at $58.42/bbl, down $0.32/bbl from the end of Tuesday’s trading.