(Adds details throughout, includes natural gas figures)
By Catherine Ngai and Scott DiSavino
NEW YORK Dec 12 U.S. shale production is set to
snap a five-month decline in January, the U.S. government said
on Monday, a move that comes just days after OPEC and rival
producers agreed to reduce crude output in an effort to boost
The month-on-month increase in production would be the first
since July and the second rise in a year, according to the U.S.
Energy Information Administration's drilling productivity
January production will edge up 1,400 barrels per day to
4.542 million bpd, the EIA said. In December, it was expected to
drop by 29,000 bpd.
In the Permian Basin of West Texas, output is projected to
rise by 37,000 bpd to 2.13 million bpd, the data showed.
North Dakota's Bakken oil production was set to drop by
13,000 bpd to 906,000 bpd. Eagle Ford output in South Texas was
set to drop by 23,000 bpd to 980,000 bpd.
On Saturday, members of the Organization of the Petroleum
Exporting Countries and rival producers agreed to cut global
output in their first such deal since 2001. As part of the deal,
non-OPEC producers would scale back output by 558,000 bpd.
The cutbacks, on top of the 1.2 million bpd by OPEC, would
start in January.
Analysts point out, however, that production cuts globally
would encourage further price increases, allowing U.S. shale
drillers to ramp up output following a two-year oil rout.
Goldman Sachs said on Sunday that U.S. shale production is
on track to grow in the first quarter, with producers achieving
800,000 bpd of annual production growth at $55 a barrel.
Total natural gas production was forecast to increase in
January for the first time in five months to 47.5 billion cubic
feet per day (bcfd), the EIA said. That would be up almost 0.1
bcfd from December.
The biggest regional decline was expected to be in the Eagle
Ford, down almost 0.2 bcfd to 5.4 bcfd in January, the lowest
level of output in the basin since November 2013, the EIA said.
Output in the Marcellus formation in the eastern U.S. was
set to rise by almost 0.2 bcfd to 18.5 bcfd in January, a third
EIA also said producers drilled 635 wells and completed 570
in the biggest shale basins in November, leaving total drilled
but uncompleted wells (DUCs) up 65 at 5,218, the most since May.
(Reporting by Catherine Ngai and Scott DiSavino; Editing by
Chizu Nomiyama and Alan Crosby)