The Energy Information Administration (EIA) released its monthly Drilling Productivity Report today, complete with production projections through year-end 2014.
In review, the rig count of the four major oil basins (Bakken, Eagle Ford, Niobrara and Permian) increased by 113 from December 2013 to October 2014. The Permian accounted for a whopping 86 rigs, while the remaining three plays added a total of 27 rigs.
Although the Permian added more than 20 times the amount of rigs of Texas’ “other” basin, the Eagle Ford, it did not match up to the production increase of its interstate rival. Projected Eagle Ford production for December 2014 is expected to reach 1,653 MBOPD – a 36% increase compared to numbers from December 2013. Its production per rig ratio also leads all of its peers.
The Permian is still the leading U.S. oil producer at rates of 1,851 MBOPD (for Dec. 2014), but the Eagle Ford is closing in. If considering oil volumes solely between the Eagle Ford and Permian, the Permian’s share has lessened to 52.8% for projected year-end 2014 from 54.1% at year-end 2013. This comes even after the Permian’s projected rates for December 2014 are expected to be 30% higher on a year-over-year basis.
The Bakken and Niobrara regions also enjoyed considerable oil growth, increasing by 27% and 24%, respectively.
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