EIA: US Shale Production Set to Rise to Highest on Record in June

(Reuters) — U.S. oil output from the seven biggest shale basins is due to rise in June to the highest on record, data from the Energy Information Administration showed on Monday.

Oil output is set to rise by 41,000 barrels per day (bpd) to 9.33 million bpd, the EIA said.

Crude output in the Permian Basin in Texas and New Mexico, the biggest U.S. shale oil basin, is expected to rise by 15,000 bpd to a record high 5.71 million bpd.

In the Bakken region of North Dakota and Montana, output is due to rise 13,000 bpd to 1.23 million bpd, the highest since November 2020.

Crude oil production in the South Texas Eagle Ford region is due to gain by a mere 2,000 bpd to 1.11 million bpd, the highest since November 2022.

Total natural gas output in the big shale basins will increase by almost 0.3 billion cubic feet per day (Bcf/d) to a record 97.2 Bcf/d in June, EIA projected.

That would top the current monthly all-time high of nearly 97 Bcf/d expected in May.

In the biggest shale gas basin, Appalachia in Pennsylvania, Ohio and West Virginia, output will rise to 35.3 Bcf/d in June, the highest since hitting a record 36.0 Bcf/d in December 2021.

Gas output in the Permian and the Haynesville in Texas, Louisiana and Arkansas will rise in June to record highs of 22.6 Bcf/d and 16.9 Bcf/d, respectively.

Gas output in Appalachia was expected to increase even though drillers have been getting less gas out of each new well for over two years.

EIA said it expects new Appalachia gas well production per rig to drop to 23.3 million cubic feet per day (MMcf/d) in June, the lowest since May 2020.

New gas well production per rig in Appalachia hit a record of 33.3 MMcf/d in March 2021.

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