EIA: US Shale Output Set To Fall By 600,000 Bpd In January From March Peak

Reuters

NEW YORK, Dec 7 (Reuters) - U.S. shale oil production is expected to fall by more than 600,000 barrels per day (bpd) in January from the March peak, according to a U.S. government forecast on Monday, on the back of a global glut that's slashed oil prices to a near seven-year low.

Total output is set to decline by just over 115,000 bpd to 4.86 million bpd in January compared with December, according to the U.S. Energy Information Administration's drilling productivity report.

Bakken production from North Dakota is set to fall 27,000 bpd, while production from the Eagle Ford is expected to fall 77,000 bpd. In the Permian Basin in West Texas, production is forecasted to rise by 14,000 bpd, data show.

Meanwhile, U.S. natural gas production was expected to fall for a sixth month in a row in January.

Total output was set to decline almost 0.4 billion cubic feet per day, the biggest monthly decline since March 2013, to 44.0 bcfd in January 2016, the lowest level since January 2015, according to the EIA data.

The biggest decline was expected to be in the Marcellus region in Pennsylvania and West Virginia, down 0.2 bcfd to a forecast 15.5 bcfd in January 2016.

That would be the second monthly year-on-year decline in the Marcellus region, the nation's biggest shale gas play, since at least 2008, around the time of the start of the shale boom. The first monthly year-on-year decline was expected to be in December.

(Reporting By Catherine Ngai and Scott DiSavino; Editing by Chris Reese, Bernard Orr)

Copyright 2016 Thomson Reuters. Click for Restrictions.

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