US shale oil production is forecast to rise for the eighth consecutive month, climbing 112,000 barrels per day to about 5.6 million bpd in August, the US Energy Department said.
The increase comes amid market concerns that rising shale output will dampen Opec’s efforts to curb a global supply glut.
The US shale production level would be the highest since record-keeping began in 2007, according to the US Energy Information Administration’s monthly drilling productivity report.
The Permian basin of Texas and New Mexico, the largest US oilfield, is expected to produce 2.54 million bpd, up 64,000 bpd from July, the EIA said.
In Texas’ Eagle Ford, oil production is forecast to rise 27,000 bpd to 1.39 million bpd, the most since February 2016. Meanwhile, in North Dakota’s Bakken shale play, oil output is set to rise by 3500 bpd to 1.04 million bpd, the most since November, the forecast showed.
Meanwhile, US natural gas production was projected to increase to a record 52.9 billion cubic feet per day in August. That would be up more than 0.8 Bcfd from June and also the eighth monthly increase in a row.
The EIA projected gas output would increase in all of the big shale basins in August, with the biggest increase from gas in the Marcellus formation.
Output in the Marcellus in Pennsylvania and West Virginia, the biggest shale gas play, was set to climb to 19.8 Bcfd in August, a fifth consecutive increase.
EIA also said producers drilled 1026 wells and completed 872 in the biggest shale basins in June, an increase of 154 so called drilled uncompleted wells (DUCs) from May. That raises the total to 6031, the highest level of DUCs on record.