Crude oil production
According to the monthly drilling productivity report released by the EIA (Energy Information Administration), crude oil production in the Eagle Ford and Bakken regions has declined by 14.7% and 24.7%, respectively, since the beginning of 2016 through August 1, 2016. At the same time, the Permian region saw a 1.1% decline in crude oil production.
However, drilling activity has picked up recently in the Permian region, and the rig count in the region increased by 17 to 162 in June 2016, as compared to 145 in the previous month.
Notably, Sunoco Logistics Partners (SXL), which has assets and organic projects in all three of these regions, stands to lose from these production declines.
In the next part, we’ll discuss SXL’s natural gas liquids business.