US Oil and Gas Production Continues to Rise but Inflation’s Effects Loom

The US Energy Information Administration projects that the nation’s unconventional oil and gas production will reach record levels in November. There are indications that inflation could limit growth moving forward.

According to the EIA’s monthly Drilling Productivity Report, shale oil production should surpass 9 million barrels per day in October. It will increase to 9.1 million bpd in November. Shale gas production is anticipated to increase to 94.5 billion cubic feet per day this month.

U.S. dry natural gas production in 2021 was about 34.5 trillion cubic feet (Tcf). It is an average of about 94.6 billion cubic feet per day and the highest annual amount recorded. Most of the production increases since 2005 are the result of horizontal drilling and hydraulic fracturing techniques. Notably in shale, sandstone, carbonate, and other tight geologic formations. Natural gas is produced from onshore and offshore natural gas and oil wells and from coal beds. In 2021, U.S. dry natural gas production was about 13% greater than U.S. total natural gas consumption.

U.S. dry natural gas production in 2021 was about 1 Tcf greater than in 2020. This is as the natural gas drilling industry recovered from the effects of the COVID-19 pandemic and encouraged by increases in demand, especially for exports, and by higher prices for natural gas.

Five of the 34 natural gas-producing states accounted for about 70% of total U.S. dry natural gas production in 2021. 09178789739

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Source: Upstream

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