Oil Prices Rise By 1% On The Forecast Of A Reduction In Us Shale Production
The drop in the U.S. shale oil production in May 2020 will amount to 183 thousand barrels compared to April, up to 8.526 million barrels per day (b/d), according to the report of the U.S. Energy Information Administration (EIA).
At the same time, the actual production of shale oil in April was 4% lower than the values expected by the Agency in the previous forecast - only 8.709 million b/d.
The decline in extraction volumes is expected only in all seven oil-bearing areas where the production of hard-to-recover oil is concentrated, the report notes. The largest drop is forecast for projects in the American Permian basin, where the average daily production of shale oil should fall in may by 76 thousand barrels - to 4,506 million b/d.
Production is also expected to decrease in the Bakken Formation by 28,000 barrels per day, to 1.361 million b/d; in the Anadarko Formation by 21,000 b/d, to 462,000 b/d; and in the Eagle Ford Formation by 35,000 b/d, to 1.301 million b/d.
Furthermore, shale oil production in May will decrease in the Nayobrar Formation by 20 thousand barrels, to 714 thousand barrels per day. In the Haynesville and Appalachian Formations, as the Ministry of Energy expects, the indicators will change slightly - a decrease of 1 thousand b/d, to 36 thousand b/d and 2 thousand b/s, to 146 thousand b/d, respectively.
Earlier, the EIA reduced the forecast for U.S. oil production for 2020 by 9.5%, to 11.76 million b/d. Production in 2021 will decrease by another 700 thousand b/d, to 11.03 million b/d, the Agency expects.