The US Energy Information Administration (EIA) released its Drilling Productivity Report. It indicates that November should break domestic oil and gas production records.
With the current state of global affairs and energy concerns, coupled with OPEC’s recent announcement of cutting production; it would seem oil and gas output would be consistent throughout the world.
Last week’s EIA report, however, not only forecasts an increase in production across the board. It records highs could be expected. Encompassing the Anadarko, Appalachia, Bakken, Eagle Ford, Haynesville, Niobrara, and Permian basins, statistical data displays an increase in barrels per day for oil and cubic feet for natural gas. Considering the Biden Administration’s pressuring of the Strategic Petroleum Reserve, this could yield positive news.
The Anadarko Basin covers 50,000 square miles, including Oklahoma, Texas, Kansas, and Colorado acreage. Although seemingly small, the report stipulated 425 thousand barrels per day of oil for October, with a projected increase to 431 for November. The report notes October gas production at 6,708 million cubic feet per day, with an expected jump to 6,709 million cubic feet per day for November.
The Appalachian Basis is vast in size and spans from upstate New York down to Tennessee. The tract of land includes parts of Mayland and Kentucky, but its primary focus encompasses Pennsylvania, Ohio, and West Virginia. Also, the EIA documents an increase of 2 thousand barrels per day to 122, but natural gas production is expected to increase from 35,577 million cubic feet per day in October to 35,666 in November.
The Bakken first produced oil more than 50 years ago and includes the states of North Dakota, Montana, and Saskatchewan. The EIA expects 1,190 thousand barrels per day of oil from the Bakken this November, which is a 22 thousand barrel per day jump from the previous month. Moreover, the report indicates an increase from October of 33 million cubic feet per day. In November, gas production is expected to increase, with 3,189 million cubic feet of gas.
Eagle Ford Region
According to the EIA Drilling Productivity Report, oil production should surpass the October tally and increase from 1,208 to 1,226 thousand barrels per day in November. The EIA additionally predicts similar activity in natural gas production with an increase of 91 million cubic feet per day, resulting in a November expectancy of 7,311 million cubic feet per day. The Eagle Ford boasts a sedimentary rock formation found in Texas.
The Haynesville covers 9,000 square miles. It is across Louisiana, East Texas, and Arkansas at an average of 200 to 300 feet of depth. While oil production is expected to remain the same between October and November at 37 thousand barrels per day, the outlook on natural gas offers a different perspective. The EIA predicts natural gas production to increase from 15,878 million cubic feet per day in October to 16,078 million cubic feet per day in November.
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The Niobrara region is situated in the northeast sector of Colorado and stretches into Wyoming, Nebraska, and Kansas. Accessed through horizontal and vertical drilling methods, both oil and natural gas reside at depths of 3,000 to 14,000 feet. Also, the Niobrara oil production will increase by 6 thousand barrels per day in November to 646. In addition, natural gas production will mirror oil production with its rise from October’s 5,062 million cubic feet per day to 5,075 in November.
Touted as the most significant domestic oil play, the Permian spans the states of Texas and New Mexico. With an additional 50,000 thousand barrels per day predicted, Permian production should reach 5,453 thousand barrels per day for November. The EIA additionally expects high returns in natural gas production, with a significant increase from 20,930 million cubic feet per day in October to 21,057 in November. That is a jump of 127 million cubic feet per day in gas production in just one month.
Weighing the Upside
Considering the difference between October and the November projections levied by the EIA, oil production yields a total increase of 104 thousand barrels per day. With natural gas entering the spotlight at well with a 554 million cubic feet per day increase of its own.
While global turmoil influences pricing and supply, one could deduce that a domestic production increase could only help society.
Finally, the significance of worldly happenings will determine how much influence this domestic production increase will have when evaluating supply and demand.