EIA May ’18 Drilling Report: M-U Gas & Permian Oil on Fire

Perhaps our headline uses a poor choice of words, but that’s what immediately comes to mind in describing the enormous amount of gas (and oil) production coming from America’s shale plays–in particular the Marcellus/Utica (for gas) and the Permian (for oil). Yesterday our 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. We sound like a broken record, but the numbers continue to be mind-blowing–hitting new all-time, breath-taking highs each month. This month is no exception. Last month the EIA predicated natural gas output from the seven major shale plays would go up another 1+ billion cubic feet per day (see EIA Apr ’18 Drilling Report: M-U Production Through the Roof). Once again this month EIA says collective gas production in the seven plays will go another 1 Bcf/d! A full one-third of that increase–373 million cubic feet per day (MMcf/d)–will come from the Marcellus/Utica region. The second highest jump will come from the Texas Permian oil play with 225 MMcf/d of gas production, because gas comes out along with oil and drillers are sinking holes like crazy in the Permian. Here’s the latest mind-blowing news about American oil and gas shale production…

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