rss icon Subscribe
desktop mobile

U.S. Shale Oil Production to Grow 16%

Graph: Rystad Energy

Laxman Pai

United States shale operators are on track to increase oil production by 16 percent in 2019, according to analysis by energy research firm Rystad Energy.

The growth in US onshore production from the first quarter through the fourth quarter could come in at around 1.1-1.2 million barrels per day (bpd), or 16% for the full year, according to Rystad Energy.

After a paltry first quarter, depressed by weather effects, US shale players have over the past weeks assured investors that they will achieve previously communicated production targets, as well as demonstrate excellent capital discipline and cost control.

"Despite temporary challenges faced in the beginning of the year, E&P companies are set to deliver on their original production and capital targets, with some being well positioned to perform above initial expectations. US shale players can still be expected to deliver around 16% oil growth in 2019. Several operators have in fact raised their production guidance for the remainder of the year," says Veronika Akulinitseva, senior analyst at Rystad Energy.

Rystad Energy has analyzed the first quarter results of around 50 US shale operators. The results indicate that US producers, on average, saw a slowdown in oil production growth in the first quarter. Output grew by 0.1% relative to the fourth quarter of 2018.

"The slow first quarter implies an even steeper expected growth curve for the remainder of the year. In fact, acceleration of oil production for many operators is already underway and oil additions are thus likely to increase notably already in the second quarter of 2019," Akulinitseva remarked.

The Canadian operator Enerplus was the player that raised its oil guidance the most, expecting 10% higher volumes than originally guided. It said growth is already underway and the company is aiming to generate a double-digit rise in production already in the second quarter. Likewise, SRC Energy, an independent operator in the Denver-Julesburg basin, raised its oil target by 7%, attributing the adjustment to overly conservative original guiding.

May 22, 2019

 

Energy

Aramco Uses Renewables in Gas Wells

Pic: Saudi Aramco

Saudi Arabian national petroleum and natural gas company Saudi Aramco said that using renewable

Woodside in LNG Supply Deal with Uniper

Image: Woodside

Australian LNG producer Woodside signed a heads of agreement (HOA) with Uniper Global Commodities

Qatar, Shell Partner on LNG Bunkering

Photo: Qatar Petroleum

State-owned Qatar Petroleum and the Netherlands-based oil and gas company Shell signed a

Shale Oil & Gas

US Shale to Peak at 14.5Mbpd in 2030

Graph: Rystad Energy

US shale supply will peak at approximately 14.5 million barrels per day (bpd) around 2030

Gas Flaring Dips in the Permian

Graph: Rystad Energy

Natural gas flaring in the Permian dropped in the first quarter of 2019 – the first drop in

Rates Slowdown in Permian Basin

Graph: Rystad Energy

Though the Permian Basin still dominates US land drilling, the pace of growth in this region has

Maritime Apps