EIA October DPR Shows Biggest Slump So Far in Oil, Gas Production

trending downYesterday our favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite government report, the Drilling Productivity Report (DPR). The numbers are interesting. The first thing we notice is that shale oil production in America’s top seven shale plays is set to fall around 93,000 barrels per day over the next month–the biggest monthly drop in oil production since 2007. However, you have to put that in context. Since 2007 we’ve also seen the largest gains in production we’ve had in a generation or more. A big movement up can lead to a sizable movement back down. The fact is, we’re still producing more onshore oil than we ever have. Also of note is that natural gas production is set to drop 294 million cubic feet per day (MMcf/d) over the next 30 days–which is the biggest drop in production of shale gas since the EIA started issuing the DPR, and the fifth month in a row shale gas production has decreased. While the Marcellus will once again see a big decrease in its gas production (expected to drop 215 MMcf/d, which is 73% of the total drop!), the Utica reversed. Last month’s report predicted Utica gas production would drop 4 MMcf/d. This month’s report predicts Utica gas production will increase by a whopping 57 MMcf/d…

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