U.S. Shale Output Forecast to Hit Record 8.46 Million Bpd in May: EIA

U.S. crude oil output from seven major shale formations is expected to rise by about 80,000 barrels per day (bpd) in May to a record 8.46 million bpd, the U.S. Energy Information Administration said in its monthly drilling productivity report on Monday. The largest change is forecast in the Permian Basin of Texas and New Mexico, where output is expected to climb by 42,000 bpd to a fresh peak of about 4.14 million bpd in May. In North Dakota’s Bakken region, shale production is estimated to rise by about 11,000 bpd to about 1.39 million bpd, easing from a record 1.41 million bpd hit in January. In the Eagle Ford region, output is expected to edge higher by 7,000 bpd to about 1.43 million bpd, which would be the highest monthly output since January 2016. Production growth in the Permian and other key shale basins have slowed as oil prices fell in the fourth quarter and many shale companies cut spending in the face of investor pressure to focus on earnings growth instead of increased output. Prices have rebounded this year, but drillers are expected to remain cautious. Some shale producers are turning to workforce cuts as investors step up demands for returns. However, major oil companies are boosting their presence, particularly in the Permian, the largest U.S. shale oil field. Reuters