By David Wethe and Devika Krishna Kumar, Bloomberg
The latest evidence of a pivot by oil operators from US shale to offshore appeared Oc.t 16 as the US Energy Information Administration (EIA) warned that a drop in onshore production is accelerating into November.
After revising its own figures from previous months, a decline in oil output is now expected to gain speed in every month from September through November, when combined production from the seven biggest shale fields will fall to 9.6 MMbbl/d, according to the report by the US agency.
Reports of a shrinking shale patch come as total US output soared to a record 13.13 MMbbl/d last quarter. US Gulf oil production was almost 2 MMbbl/d in July, according to the most recent data available. That’s up 4% from the previous month and marks an 11.7% jump from the same period a year earlier.
As shale growth slows, deepwater drilling is enjoying a renaissance, with more than $500 billion in global offshore investments expected through 2025, according to SLB.
10.17.2023
