EIA October Drilling Report: Marcellus Reverses, Increases Production

reversalYesterday MDN’s favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite monthly report–the Drilling Productivity Report (DPR). The DPR is the EIA’s best guess, based on expert data crunchers, as to how much each of the U.S.’s seven major shale plays will produce for both oil and natural gas in the coming month. In September, the EIA added a new tab of information for Drilled but UnCompleted wells (DUCs), which showed the number of DUCs dwindling (see EIA Sept Drilling Report: Watching DUCs Fly Away). What does the November DPR show? For one thing, it is the 12th consecutive month that U.S. shale oil production will go down, and the 7th consecutive month natural gas production from shale plays will go down. Sooner or later demand will catch up with supply and prices will go up–which is what we’ve seen over the past month or so. As for the Marcellus and Utica, we have some rather big news: For the first time since July Marcellus production is expected to go up–by 73 million cubic feet per day (MMcf/d)! And while the Utica has steadily increased natgas production month after month (the only play to do so), over the next month the EIA data crunchers predict Utica production will decrease by 10 MMcf/d. As for DUCs, the only play where new wells are being added, instead of worked down, is the Permian in Texas. Both the Marcellus and Utica are working down their inventory of DUCs…

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