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Energy

U.S. shale oil output to climb by 38,000 bpd in July -EIA

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A drilling rig operates in the Permian Basin oil and natural gas production area in Lea County, New Mexico, U.S., February 10, 2019. REUTERS/Nick Oxford

NEW YORK, June 14 (Reuters) - U.S. oil output from seven major shale formations is expected to rise by about 38,000 barrels per day (bpd) in July to about 7.8 million bpd, the highest since November, the U.S. Energy Information Administration said in a monthly forecast on Monday.

The biggest increase is set to come from the Permian, the top-producing basin in the country, where output is expected to rise by 56,000 bpd to about 4.66 million bpd, the highest since March 2020.

The forecast increase in total output was attributable to the Permian and Appalachia basins, with the other five basins expected to decline, or remain flat, the data showed.

The Eagle Ford basin in South Texas and the Bakken basin in North Dakota and Montana are each expected to register declines of 4,000 bpd.

Output in the Bakken is expected to slide to about 1.1 million bpd, the lowest since July 2020.

U.S. producers have increased drilling activity as oil prices have rebounded to about $70 a barrel. read more

Natural gas production from the major shale basins was expected to increase for the first time in four months, according to EIA's drilling productivity report going back to 2007.

Total gas output will increase less than 0.1 billion cubic feet per day (bcfd) to 84.3 bcfd in July. That compares with a monthly record high of 86.6 bcfd in December 2019.

Gas output in Appalachia, the biggest shale gas basin, was expected to increase less than 0.1 bcfd to 34.6 bcfd in July, its highest since May. That compares with a monthly record of 35.7 bcfd in December 2020.

EIA said producers drilled 532 wells and completed 779 in the biggest shale basins in May. That left total drilled but uncompleted (DUC) wells down 247 to 6,521, their lowest since September 2018.

Reporting by Devika Krishna Kumar in New York

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