« U.S. Oil Production Fell 135,000 Barrels Per Day in JanuaryPosted in The Petroleum Truth Report on April 23, 2015
U.S. crude oil production fell at least 135,000 barrels of oil per day in January 2015 compared to December 2014 according to the EIA (Figure 1).
Bakken Shale production fell the most of any play or jurisdiction losing 37,000 barrels per day in North Dakota and 4,000 barrels per day in Montana for a total of 41,000 barrels of oil per day (Figure 2). Production in California, the offshore Gulf of Mexico, Alaska and Wyoming also declined significantly.
Figure 3 shows Bakken production based on DrillingInfo data. The 42,000 barrels of oil per day drop in January production is completely consistent with EIA data differing by only 1,000 barrels per day.
This is important because DrillingInfo data also shows significant decreases in the Eagle Ford and Permian basin plays in January 2015 of 36,000 and 33,000 barrels of oil per day, respectively (Figures 4 and 5). EIA shows that Texas production increased 3,000 barrels per day.
Figure 5. Permian basin “shale” play oil production. This includes Bone Springs, Consolidated, Delaware, Spraberry, Wolfcamp,Trend Area and related combinations of those reservoirs. Source: DrillingInfo and Labyrinth Consulting Services, Inc.
(Click image to enlarge)
It is important to emphasize that all of the data presented here is early and subject to revision. In fact, my models do not predict production decreases in the tight oil plays in January based on declining rig counts. The explanation may be that the decreases are seasonal or, more likely, that operators are electing to postpone production because of low oil prices. Falling production shown by EIA in California and Wyoming could represent stripper wells that do not return operating costs at current oil prices.
If these declines prove to be valid, combined decreases from the Bakken, Eagle Ford and Permian plays amount to 111,000 barrels per day.
In any case, it is interesting that the EIA showcases all increases in U.S. oil and gas production but is silent about the production decreases that its own data shows.