Oil Production Drop "Just A Glitch"
Oct 11th, 19
So many things have an impact on the Oil & Gas Industry nowadays, trade talks, hurricanes and now missiles. Some of these are man made issues, but you can't argue with Mother Nature. According to the EIA, Hurricane Barry was to blame for a temporary 276,000 bpd crude oil production drop which was mostly in the Gulf of Mexico area.
Luckily Hurricane Barry is long gone and the season is almost over, the EIA is expecting production increases through the end of this year and leveling off into 2020.
READ MORE by clicking on the link at the top of this post "Oil Production Drop "Just A Glitch" for an article by Oilprice.com's Tsvetana Paraskova.
The Largest US Oil Production Drop In A Decade Was Just A
Glitch
By Tsvetana Paraskova - Oct 09, 2019, 2:00 PM CDT
Shale boom
The largest monthly drop in U.S. crude oil production in more than a decade in July is likely a temporary, geographically isolated glitch largely due to Gulf of Mexico shut-ins due to Hurricane Barry, the EIA said on Wednesday, expecting that U.S. crude oil production will return to grow month on month throughout the rest of this year.
According to the EIA’s most recent Petroleum Supply Monthly,
U.S. crude oil production dipped in July by 276,000 barrels per day (bpd) from
June. This was the largest decline in monthly crude oil production in more than
a decade. This production drop was temporary and geographically constrained to
the U.S. Gulf of Mexico area, where operators shut in production and evacuated
platforms ahead of the expected passing of Hurricane Barry, according to EIA. 
The Federal Offshore Gulf of Mexico saw its crude oil production plunge by 332,000 bpd in July, the EIA data showed.
Oil and gas producers shut in as much as 73 percent of the oil production in the Gulf as Barry passed through the area.
In the October Short-Term Energy Outlook, EIA expects that U.S. crude oil production will increase in each of the remaining months of 2019, and reach 13.0 million bpd in December 2019. This year’s U.S. crude oil production is forecast to average 12.3 million bpd, while the 2020 production is seen averaging 13.2 million bpd.
Although production is expected to have picked up from the July dip, the EIA acknowledged that the slowing rate of growth in shale production reflects relatively flat crude oil prices and slowing growth in well-level productivity.
The growth rate is set to level off in 2020, due to lower oil prices in the first half of the year and continuing declines in well-level productivity, the EIA says.
Meanwhile, the U.S. shale patch is bracing for an extended period of weak oil prices, and drillers and oilfield services firms are cutting staff and reducing budgets to weather the slowdown in North America’s fracking growth.
By Tsvetana Paraskova for Oilprice.com