Production growth forecast
The EIA (U.S. Energy Information Administration) has forecast that, as a result of the recent increase in drilling activity, production in key US oil and gas-producing regions is expected to increase from 4.8 million barrels per day in November 2016 to 4.9 million barrels per day in March 2017. Key regions include the Eagle Ford Shale, the Bakken Shale, the Permian Basin, and the Niobrara Formation.
While the Permian saw a rapid increase in drilling rigs, with a rise of 85 between May 2016 and November 2016, the EIA believes that drilling activity in other regions, including the Eagle Ford, has picked up. A report by the EIA stated that “since the end of November, the number of active oil rigs has increased in the Eagle Ford by 23, in the Williston by 3, and in the Cana Woodford by 12.”