US Shale Production to Fall for 8th Consecutive Month

US Shale Production to Fall for 8th Consecutive Month

US shale oil output is expected to fall in June for the eighth straight month, according to a US government forecast, as the squeeze from a two-year rout in crude prices worsens.
Total output is expected to fall by nearly 113,000 bpd to 4.85 million bpd, according to the US Energy Information Administration's drilling productivity report, Reuters reported.
Bakken production from North Dakota is forecast to fall 27,000 bpd, while production from the Eagle Ford formation is expected to drop 58,000 bpd.
Production from the Permian Basin in West Texas is expected to drop 10,000 bpd, according to the data, representing its second consecutive monthly decline.     

Oil prices are down nearly 60% from their mid-2014 highs, which have caused producers to slash capital spending and lay off thousands of workers.
Brent crude prices have rallied this year and were hovering just under $50 a barrel on Monday. Analysts warn that production could pick up later this year as producers lock in hedges at better prices to safeguard future output.
Total natural gas production is forecast to decline for a sixth consecutive month in June to 1.3 billion cubic meters per day, the lowest level since July 2015, the EIA said.
That would be down almost 14 mcm/d from May, making it the biggest monthly decline since March 2013, it noted.
The biggest regional decline was expected to be in Eagle Ford, down 5.6 mcm/d from May to 178 mcm/d in June, the lowest level of output in the basin since April 2014, the EIA said.
In the Marcellus formation, the biggest US shale gas field, June output was expected to ease by about 2.8 mcm/d from May to 489 mcm/d in June. That would be the fourth monthly decline in a row.

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