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UPDATE 1-U.S. shale oil output to rise 22,000 bpd to record 9.2 mln bpd in Feb - EIA

cnbc ·  Jan 21, 2020 00:00

Feb - EIA@ (Adds further data, milestones)

NEW YORK, Jan 21 (Reuters) - U.S. oil output from seven major shale formations is expected to rise about 22,000 barrels per day (bpd) in February to a new record of about 9.2 million bpd, the U.S. Energy Information Administration said in a monthly forecast on Tuesday.

Output at the largest formation, the Permian Basin of Texas and New Mexico, is expected to rise 45,000 bpd to a record 4.80 million bpd. That would be the smallest increase since June 2019, the data showed.

Production from North Dakota and Montana's Bakken region is expected to rise by about 5,000 bpd to a fresh peak of about 1.53 million bpd.

The Permian and Bakken regions have been the biggest drivers of a shale boom that has helped make the United States the biggest oil producer in the world, ahead of Saudi Arabia and Russia.

However, the rate of growth has slowed as independent oil producers cut spending on new drilling and completions and focus more on earnings growth.

Meanwhile, production is forecast to decline in the Eagle Ford, Niobrara and Anadarko basins, the EIA said. (Reporting by Devika Krishna Kumar in New York; editing by Jonathan Oatis and Marguerita Choy)

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