Permian and Eagle Ford lead US crude output higher

Houston, 15 May (Argus) — US shale crude output is expected to rise by 122,000 b/d to 5.4mn b/d next month, according to new data from the US Energy Information Administration (EIA).The largest increases will be in the Permian basin in Texas and New Mexico, and the Eagle Ford in south Texas, the EIA said in its latest Drilling Productivity Report.Permian basin production should increase by 71,000 b/d from May to June to about 2.49mn b/d.Output in the top-producing Permian has been more resilient than in other regions during the downturn in commodity prices because of lower extraction costs. Midstream companies are investing heavily to add takeaway capacity out of the region because of the expected rise in output.Eagle Ford oil production is expected to rise by 36,000 b/d to about 1.28mn b/d in June.

Source: News – Argus Media

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