Kemp: US Shale Boom Nears Turning Point

John Kemp is a Reuters market analyst. The views expressed are his own


LONDON, April 14 (Reuters) – Oil production from major U.S. shale plays will decline by almost 60,000 barrels per day between April and May according to new estimates from the Energy Information Administration.

Production is expected to decline in the Bakken, Niobrara and Eagle Ford plays next month. Only the Permian Basin is expected to post a small month-on-month increase in output ("Drilling Productivity Report" Apr 2015).

With the number of rigs drilling for oil in the United States down by almost 53 percent in just six months, according to oilfield services company Baker Hughes, the shale boom appears to be approaching a turning point.

The crude market remains substantially oversupplied as a result of past production, but the degree of excess supply should narrow in the coming months.

The attached chartbook presents a selection of contemporary indicators for supply, demand, stocks and prices, including spreads, in the U.S. oil market:

(Editing by Jason Neely)

Copyright 2016 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Terence Brogan | Apr. 14, 2015
Why is everyone focused on supply? If you check the gasoline sales on the EIA website the amount is down 50% since 2008. Yes supply is up a little, but the bottom has fallen out of US demand and elsewhere. Are people afraid to put this in the news?


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Project Controls Specialist
Expertise: Project Management
Location: Minneapolis
Quality Assurance and Training Specialist Job
Expertise: HR - General|HR - Trainer / Instructor|Risk Management
Location: Minneapolis, MN
Well Monitoring Specialist
Expertise: WellSite Supervisor
Location: Houston, TX
search for more jobs

Brent Crude Oil : $51.46/BBL 0.61%
Light Crude Oil : $50.52/BBL 0.64%
Natural Gas : $2.83/MMBtu 5.35%
Updated in last 24 hours