Changes

''Contributions by Lucy Ko, Ursula Hammes and Justin Birdwell''

''Contributions by Lucy Ko, Ursula Hammes and Justin Birdwell''

[[File:Figure1 2019-20 Comm Rept.jpg|thumb|300px|{{figure number|1}}U.S. total oil production forecasts. Solid lines indicate actual production, dashed lines show forecast production through the end of 2021. Data Source: U.S. Energy Information Administration.]]

[[File:Figure1 2019-20 Comm Rept.jpg|thumb|200px|{{figure number|1}}U.S. total oil production forecasts. Solid lines indicate actual production, dashed lines show forecast production through the end of 2021. Data Source: U.S. Energy Information Administration.]]

In 2019, total daily tight oil and gas production increased in the United States month over month, with annualized growth of 14% for oil and 12% for gas. Those gains leveled off in the first quarter of 2020 due to aggressive price competition and increases in international production. Then came the pandemic with a substantially larger dose of economic turmoil, driving down demand due in part to shelter in place orders and safety concerns around travel. Between March and May, tight oil and gas production dropped by nearly 2 million bpd and almost 5 Bcf/day before beginning to recover. Production has continued to increase for the most part through the second half of 2020, but drilling remains subdued throughout most of the U.S. and uncertainty around long term demand along with the current price environment and general state of the economy has contributed to layoffs throughout the industry.

In 2019, total daily tight oil and gas production increased in the United States month over month, with annualized growth of 14% for oil and 12% for gas. Those gains leveled off in the first quarter of 2020 due to aggressive price competition and increases in international production. Then came the pandemic with a substantially larger dose of economic turmoil, driving down demand due in part to shelter in place orders and safety concerns around travel. Between March and May, tight oil and gas production dropped by nearly 2 million bpd and almost 5 Bcf/day before beginning to recover. Production has continued to increase for the most part through the second half of 2020, but drilling remains subdued throughout most of the U.S. and uncertainty around long term demand along with the current price environment and general state of the economy has contributed to layoffs throughout the industry.

Some shale-gas production has declined recently, but a few areas have seen expansion due to construction of LNG facilities along the East Coast of the U.S. (e.g., the Haynesville Formation). Current U.S. shale-gas production is still higher now than in 2019, with daily production of almost 71 Bcf as of October 2020 driven in large part by increased production from the Marcellus Shale in the Appalachian Basin and shales within the Permian Basin. Shale liquids production is down by around a million bpd to approximately 7.1 million (September 2020; U.S. EIA) from pre-pandemic production levels at the end of 2019 and beginning of 2020. Tight oil production remains dominated by plays in the Permian Basin as well as the Bakken and Eagle Ford Formations.

Some shale-gas production has declined recently, but a few areas have seen expansion due to construction of LNG facilities along the East Coast of the U.S. (e.g., the Haynesville Formation). Current U.S. shale-gas production is still higher now than in 2019, with daily production of almost 71 Bcf as of October 2020 driven in large part by increased production from the Marcellus Shale in the Appalachian Basin and shales within the Permian Basin. Shale liquids production is down by around a million bpd to approximately 7.1 million (September 2020; U.S. EIA) from pre-pandemic production levels at the end of 2019 and beginning of 2020. Tight oil production remains dominated by plays in the Permian Basin as well as the Bakken and Eagle Ford Formations.