Eagle Ford oil production increased slightly during July, according to Bentek Energy.
After peaking in April are the highest levels since 1971, analysts predicted that U.S. oil production would continue to decline through the early part of next year bringing supply and demand back into balance.
Related:EIA: U.S. Oil Production Has Peaked
Eagle Ford production fell in May by 50,000 barrels per day and then increased10,000 barrels a day, a slight 1% from June to July. Average production throughout the region was 1.6 million b/d, about 17% higher than July 2014.
“Initial production (IP) rates have been improving, especially in the oily window of the Eagle Ford Basin. As well, producers in the Eagle Ford are currently drilling 2.5 wells per rig per month, which is higher than the national average of 1.5 wells. Drill times have been improved from an average of 15 days per well in 2014 to roughly 11 days per well in 2015.”
The Eagle Ford continues to lead other shale basins in efficiency gains and internal rates of return of around 18%. Bentek reports that the Bakken formation is just behind the Eagle Ford with drilling decreasing from about 15 days per well in late 2014 to about 13 days per well during the second quarter of this year.