U.S. shale production is expected to fall for an 11th consecutive month in October, according to a U.S. government forecast released on Monday, on the back of a two-year global rout in oil markets.
October oil production is set to drop by 61,000 barrels per day to 4.41 million bpd, according to the U.S. Energy Information Administration’s drilling productivity report, the lowest output since March 2014.
The biggest decline was in the Eagle Ford in Texas, which saw a fall of 46,000 bpd to nearly 982,000 bpd. In North Dakota, Bakken oil production is set to drop by some 28,000 bpd to 914,000 bpd.
While oil prices are trading at less than half of their value from mid-2014, they have recovered from 13-year lows earlier this year, recently even reaching $50 a barrel LCoc1. That has allowed at least some production declines to be tempered in the Permian, the largest U.S. shale basin by production.
Permian output from West Texas is set to rise by 22,000 bpd to nearly 2 million bpd, its second monthly increase.