The momentum of the U.S. shale revolution is beginning to slow, according to the Energy Information Administration’s latest monthly drilling productivity report released this week. With the exception of the Permian Basin, the nation has experienced an overall decline in oil and gas production in the major shale plays.
According to Shale Plays Media, by July production in the major U.S. shale plays is projected to drop by approximately 208,782 barrels of oil per day (bopd), down from April’s high of 5,694,580 bopd. This production downturn is largely attributed to a decrease in legacy production and increasing well depletion rates.
The EIA reports that for the month of May, the Bakken produced 1.29 million barrels of crude oil per day, down 1 percent from April, but 23 percent greater than the same time period last year. Following the nationwide trend toward efficiency, though, the Bakken Shale produced 608 barrels of crude oil per day per rig, a 48 percent increase in production per rig compared to the previous year. This higher rate of production, however, has led to a decline in crude oil prices, leaving producers with less incentive to increase production. To read the full article, and to see activity in the other shale plays, click here.