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May Sees Production at Certain US Shales Finally Slow Down (Continued from Prior Part) Crude oil production to drop
The EIA (U.S. Energy Information Administration) expects oil and gas production to slow at most shales by July. But it also expects some increased activity. According to its “Drilling Productivity Report” released on June 8, 2015, the EIA expects crude oil production to decrease at five key shales in July and increase at two others.
Overall, aggregate crude oil production at the seven key shales is expected to drop by 2.9% in July compared to May levels.
Bakken may lose, Permian may gain
The Bakken is one of the major crude oil resource shales expected to see a decrease between May and July. The EIA estimates it will produce 1.23 MMbpd (million barrels per day) in July, after having produced 1.29 MMbpd in May—a 4% decrease. Oil production at the Niobrara Shale is expected to fall the most, by 7.5% in the next two months.
The Permian Basin, the most prolific crude oil–producing shale in the United States, is expected to increase production by a marginal 0.5% by July. The Utica Shale is expected to increase production most, by 2.3% in the same period. Utica, however, has a much smaller oil production base than the Bakken Shale and the Permian Basin do.
How producers will be affected
Companies including EOG Resources (EOG), Concho Resources (CXO), and Matador Resources (MTDR) will drive higher production in the Permian Basin. This would be positive for them. Reduced Bakken oil production, led by producers such as Denbury Resources (DNR) and Continental Resources (CLR), would be negative for these companies.
DNR forms 1.3% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
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Concho Resources Inc.
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CODE : CXO |
ISIN : US20605P1012 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Concho Resources is a exploration company based in United states of america. Concho Resources is listed in United States of America. Its market capitalisation is US$ 9.6 billions as of today (€ 7.9 billions). Its stock quote reached its highest recent level on July 05, 2019 at US$ 99.97, and its lowest recent point on January 15, 2021 at US$ 65.60. Concho Resources has 146 059 000 shares outstanding. |