Oil Market Uncertain As US Shale Boom “Goes Bust”

Oil market is uncertain as the US shale oil output is expected to fall for the first time in four years, and the coming months are likely to see a continuing price war between OPEC producers. Deutsche Bank, Goldman Sachs and HIS are now projecting that US oil production growth will now end. The global oil price rose slightly in the morning of April 14.

Citing the April 13, 2015 US Energy Information Administration prediction on the US shale production Andy Rowell writes in Oil Change International:

The production would fall by 57,000 barrels per day in May this year.

The report says:

“The EIA forecasted that the seven major shale formations in the US: Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara, Permian and Utica will produce a total of 5.56 million barrels of crude oil daily next month, down from 5.62 million barrels per day in April.

“These seven regions have accounted for 95% of domestic oil production growth and all domestic natural gas production growth over the last few years.

“Although the most productive formation, Permian, will see a slight increase in production by 11,000 barrels per day to 1.99 million, the output at the next highest producer, Eagle Ford, will drop 33,000 barrels daily, while the output from Bakken will decline by 23,000 bpd next month.

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