U.S. shale output heading for record drop, EIA forecasts
Jul 13 2015, 18:36 ET | By: Carl Surran, SA News Editor [Contact this editor with comments or a news tip]
Oil production from U.S. shale in August is expected to fall by 91K bbl/day from July to 5.36M bbl/day, the most since at least 2007 and the fourth month in a row of expected production declines, according to the EIA's latest monthly report.
Oil output at the Eagle Ford shale play in south Texas is forecast to see the biggest decline, down 55K bbl/day to 1.54M bbl/day, while the Bakken shale in North Dakota and surrounding areas is expected to see output fall by 22K bbl/day to 1.18M; production in the Permian play of west Texas, the biggest U.S. shale, is expected to rise 5K bbl/day to 2.05M bbl/day.
‘"We need to see oil prices above $60 and more toward $65 to spur a recovery in the rig count, says Bloomberg's Andrew Cosgrove. "The longer it stays below $60, the harder it’s going to be for U.S. production to ramp back up.’"
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