More Utica Shale Production Forecast in December
YOUNGSTOWN, Ohio – Oil and natural gas production in eastern Ohio’s Utica shale is expected to slightly increase in December, bucking the trend of other major shale plays across the country where production is projected to decline.
According to the U.S. Energy Information Administration’s drilling productivity report for November, Utica natural gas production should stand at 3.066 billion cubic feet per day for the month. In December, output is expected to reach 3.132 billion, or an additional 66 million cubic feet of gas.
Oil production is also projected to rise in December, the EIA reports.
During the month of November, Utica wells are on pace to produce 79,000 barrels of oil per day, while that number should grow to 80,000 barrels in December.
The EIA tracks oil and gas production in seven major shale plays across the country: the Utica, Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara and Permian.
Of these seven plays, only the Permian and Utica are expected to boost production next month, EIA reports.
Natural gas production in the Marcellus shale in Pennsylvania and West Virginia is expected to decline by 229 million cubic feet per day next month, EIA said.
Overall oil and gas production from the country’s shale plays is expected to be lower in December, EIA noted. In November, oil production from all seven shale plays totaled 5.067 million barrels of oil per day. This amount is expected to decline to 4.949 million barrels per day in December, a drop of 118,000 barrels.
Natural gas production across U.S. shale plays is also being curtailed. In November, shale wells produced 44.682 billion cubic feet of natural gas per day and are projected to reduce output to 44.288 billion cubic feet of gas per day, or a decline of 394 million cubic feet of gas daily.
Exploration companies have throttled back production because of exceedingly low oil and gas prices. On Thursday morning, the price of a barrel of crude hovered around $46 after a 3.4% drop on Wednesday.
Copyright 2024 The Business Journal, Youngstown, Ohio.
