The U.S. Energy Information Administration estimates next month's biggest oil production increase to be in the Permian region in Texas, a report revealed on Tuesday.
According to the agency's latest Drilling Productivity Report, the oil production in the Permian is estimated to increase from 3,981 thousand barrels per day (kb/d) in February to 4,024 kb/d in March, up by 43 kb/d.
Gas production in the region is also estimated to increase by 219 million cubic feet per day (mcf/d) (6.2 million cubic meters) to 13,397 mcf/d over the same period.
In total, the EIA sees a monthly increase of 84 kb/d across five of the seven key regions including Anadarko, Appalachia, Bakken, Eagle Ford, Haynesville, Niobrara and Permian.
Next month, the daily oil production in Appalachia is estimated to go up to 141 kb/d from 138 kb/d, Eagle Ford is expected to reach 1,438 kb/d from 1,429 kb/d, Bakken’s output is forecast to increase to 1,452 kb/d from 1,439 kb/d, while production from Niobrara is to hit 713 kb/d from 697 kb/d.
No change is expected in Anadarko, and Haynesville regions, where output is expected to remain flat at 587 kb/d and 43 kb/d, respectively.
-Total daily gas output expected to go up by 858 mcf
According to the EIA's estimates, gas production in the seven key regions is expected to reach 77,967 mcf/d in March from 77,109 mcf/d in February, an increase of 858 mcf/d
The biggest increase is expected in Appalachia, where daily gas production is estimated to rise to 31,602 mcf from 31,292 mcf this month – an increase of 310 mcf.
The estimates for the other five regions are as follows:
Haynesville: up to 10,265 mcf from 10,105 mcf
Eagle Ford: up to 6,937 mcf from 6,885 mcf
Niobrara: up to 5,319 mcf from 5,256 mcf
Anadarko: up to 7,706 mcf from 7,666 mcf
Bakken: up to 2,741 mcf from 2,727 mcf
The Drilling Productivity Report uses recent data on the total number of drilling rigs in operation along with estimates of drilling productivity and estimated changes in production from existing oil and natural gas wells to provide estimated changes in oil and natural gas production for seven key regions.
EIA's approach does not distinguish between oil-directed rigs and gas-directed rigs because once a well is completed it may produce both oil and gas; more than half of the wells produce both.
By Hale Turkes