EIA: mining of the shale oil in the US will decline in November
According to the US Energy Information Administration (EIA), the production of the shale oil in the United States in November this year will continue to decline, which has been fixing for 12 months in a row. This is due to low raw material prices, which are being kept for two years.
According to EIA, the production of shale oil will fall by 30,000 barrels per day in November, and will amount to 4.43 million barrels per day. This has been the lowest level since March 2014.
It is expected that the strongest fall of the production will happen at the field Eagle Ford in Texas. The forecast of the drop is 35,000 barrels per day. The level of the production will be 947,000 barrels per day. It is also expected that the production will be reduced by 21,000 barrels per day in the Bakken field in North Dakota, reaching 946,000 barrels per day.
Oil prices have fallen more than twice – from $ 107 per barrel in mid-2014. Recently, however, futures contracts for WTI have exceeded the figure of $ 50 per barrel from its February lowest level over 13 years, which is equal to $ 26 per barrel. This has made it possible for American producers of shale oil to increase the production at the biggest oilfield Permian.
By the way, according to the forecast, the production on the above-mentioned field, which is located in the east of the State of New Mexico, will grow by 30,000 barrels to an unprecedented level of more than 2 million barrels per day since 2007. The production on the field Permian has been growing the third month in a row.
EIA also reports that the November production of natural gas will be decreasing the seventh consecutive month to 1.3 billion cubic meters per day. This has been the lowest indicator since July 2015. Compared with October production, this level will fall by 0.005 cubic meters per day in November, according to the forecast. The EIA reported that the US producers drilled 506 wells in September and launched 533 wells on the biggest shale deposits.