Yesterday 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. For the past four reports, estimating production for November, December, January, and February, Marcellus natgas has increased. The trend continues in this latest report, which forecasts production for the coming month of March. In fact, EIA says natgas production for six of the seven major shale plays will go up–by a lot. In fact, if the numbers prove to be true, the combined natural gas production for the seven major plays will hit a new record high of 49.1 billion cubic feet per day (Bcf/d) in March. Two months ago the EIA predicted natgas production in the Marcellus would zoom up by 160 million cubic feet per day (MMcf/d). Last month EIA predicted Marcellus production would go up another huge 188 MMcf/d. This month, it’s even higher: March production will go up 192 MMcf/d! The other big story (for us) is just how much natgas production is rising in the Texas Permian Basin–up another 129 MMcf/d. But wait, the Permian is an oil play, right? Correct. However, more than just oil comes out of the ground–plenty of “associated” natural gas also comes out, along with the oil. The Permian is seeing white hot levels of new drilling. The more oil drilling, the more associated natural gas that comes along with it. Below we have the latest report, long with some analysis…
Yesterday 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. For the past four reports, estimating production for November, December, January, and February, Marcellus natgas has increased. The trend continues in this latest report, which forecasts production for the coming month of March. In fact, EIA says natgas production for six of the seven major shale plays will go up–by a lot. In fact, if the numbers prove to be true, the combined natural gas production for the seven major plays will hit a new record high of 49.1 billion cubic feet per day (Bcf/d) in March. Two months ago the EIA predicted natgas production in the Marcellus would zoom up by 160 million cubic feet per day (MMcf/d). Last month EIA predicted Marcellus production would go up another huge 188 MMcf/d. This month, it’s even higher: March production will go up 192 MMcf/d! The other big story (for us) is just how much natgas production is rising in the Texas Permian Basin–up another 129 MMcf/d. But wait, the Permian is an oil play, right? Correct. However, more than just oil comes out of the ground–plenty of “associated” natural gas also comes out, along with the oil. The Permian is seeing white hot levels of new drilling. The more oil drilling, the more associated natural gas that comes along with it. Below we have the latest report, long with some analysis…