The Drilling Productivity Report, released monthly by the Energy Information Administration, expects production in all seven listed regions to rise in February even though companies are laying down rigs and reducing operations.
The two respective giants of the oil and gas plays are leading the charge, with the Permian projected to increase its output to 1,929 MBOPD and the Marcellus boosting its volume to 16,550 MMcf/d. The Permian alone produced more oil than five members of OPEC, according to the latest version of the cartel’s Oil Market Monthly. The next version is scheduled for release on Thursday. Production for November 2014 was actually down by more than 500 MBOPD compared to September, but the slightly reduced volumes have not had much effect on freefalling oil prices.
Despite the increase, Bloomberg reports the rate of increase is the lowest in nine months. Baker Hughes (ticker: BHI) reported 61 rigs were laid down last week, and Barclays expects as many as 500 onshore U.S.-based rigs will be idled throughout the course of 2015.
Source: EIA Drilling Productivity Report
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