Expanded New Well Productivity Helped US Shale Growth In 2019

Expanded New Well Productivity Helped US Shale Growth In 2019

Rising productivity from new wells has driven U.S. shale production higher in recent years and higher in 2019, as well, the Energy Information Administration (EIA) said on Friday.

A year ago, shale production represented 64 percent of all crude oil production in the United States, with the share of shale output rising gratitude to the expanding productivity of new wells that were brought online.

In all significant shale regions, the average first entire month of production from new wells has developed since 2007, the EIA has evaluated.

As production rates from new wells increased, overall shale production rose even in 2015 and 2016 when boring action was quelled to the low oil costs.

“Since 2017, recovering oil prices and more efficient production from new wells have helped producers cover costs of drilling, production, and the development of new technologies,” the EIA said.

The longer laterals and the infusion of more proppant during the fracking procedure have been the key drivers of higher new well productivity over the previous decade.

In the Permian region, total production and production per new well have been continually developing for 13 years in a row, as indicated by the EIA.

Even though at a more slow pace, the U.S. shale production will keep on expanding in the close to term, according to EIA estimates.

Oil production in the seven most productive shale plays in the U.S. is set to increment by 22,000 BPD in February to 9.2 million BPD, the EIA said in its most recent month to month Drilling Productivity Report prior this week. Year over year, the Permian basin’s production in February 2020 would be an expansion of 800,000 BPD.

In the January 2020 Short-Term Energy Outlook (STEO), the EIA estimates that total U.S. crude oil production averaged 12.2 million BPD a year ago, an ascent by 1.3 million BPD contrasted with 2018. This year, EIA sees U.S. crude oil production averaging 13.3 million BPD, while the average American crude oil production will be 13.7 million BPD in 2021, with the Permian representing a large portion of the development.

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *