Yesterday the EIA released the monthly drilling productivity report. The report uses recent data on the total number of drilling rigs in operation along with estimates of drilling productivity and estimated changes in production from existing oil and natural gas wells to provide estimated changes in oil and natural gas production for seven key regions.
A massive drop in rig counts continues to put pressure on production. The July 2020 crude oil production and natural gas production are estimated to decrease by about 93,000 kbb/d and 693 million cubic feet per day (MMcf/d), respectively, compared to the June estimate. Oil production is set to stabilize in the Permian in July, with the drops being evenly split between the Anadarko, EagleFord, and Permian. Natural gas production will fall mainly in the App and Anadarko basins.
Permian
Appalachian Basin
Today’s Fundamentals:
Daily US natural gas production is estimated to be 83.8 Bcf/d this morning. Today’s estimated production is -0.8 Bcf/d to yesterday, and -0.7 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 65.7 Bcf today, +1.9 Bcf compared to yesterday and +0.6 Bcf to the 7D average. US power burns are expected to be 33.3 Bcf today, and US ResComm usage is expected to be 8.2 Bcf.
Net LNG deliveries are expected to be 3.7 Bcf/d today.
Mexican exports are 5.4 Bcf/d. Net Canadian imports increased to 3.8 Bcf/d.
Bloomberg IM: Het Shah
enelyst DM: @het.co
Tel: 917-975-2960
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ION-Energy-Daily-Report-June-16-2020.pdf