uploads/2017/12/prod-forecasts.png

Forecasts for Production Growth in the Permian Basin

By

Updated

Permian production forecasts

In its November drilling productivity report, the EIA (U.S. Energy Information Administration) stated that oil production is expected to rise 58,000 barrels per day in December 2017 compared to November. In contrast, the Niobrara region, which has the second-highest production growth forecast, is expected to increase its production by 7,000 barrels per day in December.

Total oil production at major US shales is expected to rise 80,000 barrels per day, implying that ~73% of that growth will come from the Permian Basin.

Oil production growth

On a year-over-year basis, oil production growth is expected to be the highest in the Permian Basin in December 2017, as you can see in the above chart. However, natural gas production is expected to be the highest in the Appalachian region (Marcellus and Utica) on a year-over-year basis.

Key Marcellus players include Cabot Oil & Gas (COG) and Range Resources (RRC), while Chesapeake Energy (CHK) is one of the top players in the Utica.

In the following part, we’ll look at production trends and forecasts in various regions of the Permian this year.

More From Market Realist