New projections show oil production soaring as rigs boost efficiency

HOUSTON — Oil production will continue to soar in the six major U.S. shale plays, with more barrels pumped per rig, according to federal projections released Monday.

Total oil production in the six regions is expected to grow to 4.43 million barrels per day in June, an increase of 75,000 barrels per day compared to May, according to the U.S. Energy Information Administration. The federal agency expects oil rigs will produce an average of 271 barrels per day each, an increase of one barrel over May.

The projection reflects the growing efficiency of rigs since the U.S. energy boom began. In June 2007, each rig produced an average of just 116 barrels per day in the most efficient region, the Bakken Shale.

The United States is home to more than half of the world’s approximately 3,400 operating rigs, though rig counts have declined or stagnated in many of the major drilling regions amid improved efficiency.

The six shale regions analyzed account for 95 percent of the oil production growth in the United States: the Eagle Ford in South Texas, the Permian in West Texas and New Mexico, the Bakken in North Dakota and Montana, the Haynesville in Louisiana and East Texas, the Marcellus in the Northeast, and the Niobrara largely in Colorado.

By: Simone Sebastian
From: fuelfix.com