AlUla unveils new experiences and opens bookings    KSRelief launches medical campaigns to combat blindness in Sudan, Nigeria    Arab Parliament expresses concern over Yemen due to Houthi militia's violations    UK's Labour Party suspends former leader Jeremy Corbyn after anti-Semitism report    US and more Arab allies denounce Houthi attacks against Saudi Arabia    SFA unveils third edition of ‘Step Together' challenge to observe World Diabetes Day    UN strongly condemns knife attack in French city of Nice    India seeks global energy industry partnerships    "SAMA": Mortgages loans reached 208,505 Contracts until Q3 of 2020    At least 140 Dead After Migrant Vessel Sinks off Senegalese Coast    Japan's Total Coronavirus Cases Top 100,000    Kuwait Condemns Nice Attack as Brutal Terrorist Crime    Etihad Airways becomes first airline to issue sustainability-linked sukuk    Police of Makkah Region: Arrest of a citizen who attacked a security guard at the French Consulate in Jeddah using a sharp tool    Abeer Olayan Petroleum and gas expert    KSRelief launches a new voluntary medical campaign in Sudan    Rector of King Khalid University receives Swedish Ambassador    Saudi Press: Saudi Arabia allocates SR 500,000 for each family of health practitioners who died of COVID-19    Weather Forecast for Thursday    Bahrain's king receives US defense secretary, lauds strong bilateral ties    KSRelief delivers civil defense machinery to Palestinian govt    KAUST – the fancy city    Maisuria: Warmups, conditioning and rest key to successful return    14-year-old Dubai-based amateur secures invite to ODMC    26 countries pay musical tribute to coronavirus frontline heroes    A new era in architecture where future details design AlUla's past Nouvel describes UNESCO site as ‘The coming together of a landscape and history'    Saudi Stock Exchange Main Index Ends Trading, higher, at 8,198.9 Points    Qur'an recitation competition for children organized    Ministry of Commerce Highlights Saudi Arabia's Endeavors to Implement Guiding Principles Protecting Consumers, at UN Forum    Bahrain's top Islamic body condemns attempts to insult Muslim symbols    Saudi Stock Exchange Main Index Ends Trading Higher, at 8,155.31 Points    Bestselling global literary icons will lead cultural program at SIBF 2020    Plan to make vaccinations compulsory for birth certificate    MoH Marks World Osteoporosis Day 2020    Saudi man accused of harassing foreign wife asked to be produced before court Court allows divorce, custody of children by mother    Man United, Liverpool in talks to join new European super league    KSrelief, IMC, Sign Memorandum of Cooperation    Napoli blast four goals as they thumped Atlanta 4-1    VAR foils Liverpool in derby draw with Everton    MoH Calls on Groups of Patients to Postpone Umrah Performance    Ithra to Launch 3rd Creativity Season (Tanween)    Red Sea International Film Festival Announces a New Short Film Competition    S. P. Bala, legendary Indian singer, dead at 74    Happy National Day 90    Eid Al-Adha Prayer Performed at the Grand Holy Mosque    Pilgrims Perform Dhuhr and Asr Prayers in Arafat Holy Site    Senior Scholars Council Issues Decision No. 246 Regarding Attendance of Friday Prayer and Prayers at Mosques in a Case of Spread of Epidemic or Fear of its Spread    Custodian of the Two Holy Mosques Addresses Citizens and Muslims on Eid Al-Fitr    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

US onshore oil production set to gradually decline after peaking in August
Published in The Saudi Gazette on 30 - 09 - 2020

Oil production from the US lower 48 states, excluding Gulf of Mexico, peaked at 9.2 million barrels per day in August following back-to-back increases since June. This climb has helped push the nationwide total above 11 million bpd and is likely to keep it above that mark for the rest of the year, according to Rystad Energy estimates.
A gradual decline in L48 output may nevertheless set in from September as onshore drilling remains below the level required to maintain production in nearly all US oil basins, despite a robust fracking exercise where operators are bringing on line their inventory of drilled but uncompleted (DUC) wells. Rystad Energy projects US onshore production to start rising again in the second half of 2021.
Preliminary well production data for July has already been reported for almost all the major oil and gas producing states. After recovering by around 540,000 bpd in June, oil volumes for the lower 48 states excluding GoM seemingly posted a second monthly increase of more than 400,000 bpd in July. We estimate another rise of 230,000 bpd in August from the same regions, which would take the total for the month to a peak of 9.2 million bpd.
Production from the Gulf of Mexico and Alaska gained by 160,000 to 170,000 bpd in July. There is a high likelihood that the nationwide total surpassed 11 million bpd in that month and it will potentially stay above that level through the remainder of the year. Based on updated July data, US dry gas production increased by about 550 million cubic feet per day between June and July and is expected to average around 90 billion cubic feet per day in the second half of the year.
Frac activity rebounded sharply in July, driven by the Permian Basin. After holding stable in August, the industry delivered another sequential increase in September. We currently estimate that about 650 frac operations were started in September. Operators are bringing their DUC completions forward, taking advantage of low oilfield services costs in the spot market, as the WTI strip rose to the mid-$40s per barrel range a few weeks ago.
Oil production in the Williston Basin — North Dakota and Montana combined — increased by 170,000 bpd in July, raising the basin total to almost 1.1 million bpd. Most shut-ins were restored by the end of July, though select wells will exhibit full production potential only in August data.
Texas oil production increased by 125,000 bpd and New Mexico added 60,000 bpd in July. The recovery in July was not limited to the Permian Basin, with south Texas's Eagle Ford also making a significant contribution as curtailed volumes were reactivated. Thousands of stripper wells in Texas remained inactive as of July, but these wells account only for a marginal share of the statewide total.
Each major state in the Rockies — Colorado, Wyoming and Utah — posted production increases, with the total from the three increasing by 25,000 to 30,000 bpd in July. Pennsylvanian gas production posted a gain of about 600 MMcfd in July, but total dry gas output from some of the core gas regions, such as Appalachia, Louisiana, the rest of Texas, still saw a sequential decline as regions outside of Pennsylvania remained in decline, according to our analysis. Oil production from Alaska rose by 80,000 bpd and by 85,000 bpd in the Gulf of Mexico in July.
"We still anticipate US oil output to average at 10.82 million bpd in 2021. A gradual decline is expected in the first half of the year, followed by a recovery in the fourth quarter. The outlook for the lower 48 states, excluding Gulf of Mexico, has been revised up by 90,000 bpd for the second half of next year, as we start hearing about modest increases in the oil rig count before the end of this year," said Rystad Energy's head of shale research Artem Abramov.
This uptick will be limited to a handful of producers without a significant DUC inventory size. Most producers with a large number of DUCs plan to increase rig activity only in the first half of next year to allow for a smooth transition from a DUC-supported completion program to a normal operations mode.
We have revised our dry gas production forecast for 2021 up by 500 MMcfd, with the most significant contribution coming from a more resilient base decline in gas basins. In the Appalachia region there are still significant numbers of older wells that produce at restricted rates, and these wells might make a positive contribution of up to 600–700 MMcfd to base production in the next three to four quarters.
Even with additional supply of 500 MMcfd in 2021 compared to the previous outlook, the US domestic gas market is still heading toward a structural supply deficit, with the possibility of stronger domestic gas prices if the global gas market recovers further. — Rystad Energy

Clic here to read the story from its source.