US shale production hits new record

Reuters:
U.S. shale production is expected to rise by about 145,000 barrels per day to a record 7.18 million bpd in June, the U.S. Energy Information Administration said on Monday.

A majority of the increase is expected to come from the Permian basin, the biggest U.S. oil patch, where output is expected to climb 78,000 bpd to a fresh record of 3.28 million bpd, the EIA said in its monthly drilling productivity report here#tabs-summary-2.

Soaring Permian crude production has already outpaced pipeline takeaway capacity, depressing prices in the region and leaving traders scrambling for alternatives to get crude to market.

Bakken output is expected to rise 20,000 bpd to 1.24 million bpd, the highest since June 2015, while Eagle Ford production is set to rise 33,000 bpd to 1.39 million bpd, the highest since February 2016.

Production in the United States has surged thanks to the shale boom, helping send U.S. crude futures’ discount to international benchmark Brent crude futures WTCLc1-LCOc1 to the widest in six months.

Meanwhile, U.S. natural gas production was projected to increase to a record 68.1 billion cubic feet per day (bcfd) in June. That would be up almost 1.1 bcfd over the May forecast and would be the fifth monthly increase in a row.

A year ago in June output was just 56.4 bcfd.

The EIA projected gas output would increase in all of the big shale basins in June.
...
US shale production alone is more than Iran is exporting.  The biggest bottlenecks now in the US getting the infrastructure online to deliver the oil and gas to markets where it is needed.   The other drawback is the lack of refining capacity to process the light crude produced by the shale wells.  That would be a key factor in making the US energy independent and greatly reduce imports.

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