While rig counts at the Bakken and Eagle Ford shale plays continue to free fall, production at the basins barely budged in May.
According to a report by Platts’ Bentek Energy, oil production from the Eagle Ford shale basin in Texas ticked down by less than 1 percent, or about 6,000 barrels per day, from April to May.
The fall marked the second straight month of declining production from the basin, but the drop was 2,000 barrels less than April’s production dip.
According to the report, the Eagle Ford Basin is currently producing about 1.6 million barrels of oil per day.
Crude production from the North Dakota section of the Bakken play in the Williston Basin remained “relatively flat.”
Producers in Bakken added only 650 barrels per day from April to May, an increase of less than 1 percent.
Bentek Energy analyst Sami Yahya said production in Eagle Ford grew by 21 percent, or 280,000 incremental barrels per day, since May 2014.
Average crude production from the North Dakota section of the Bakken hit 1.2 million bpd in May, up 155,000 bpd year-over-year.
The report found that shorter drill times at both plays have helped support production as rig counts in the basins continue to drop.
“While producers have been actively making gains in efficiency and high-grading their acreage, the efforts have not been sufficient to prevent oil production from dipping. Still, it is worth noting that production decline from the Eagle Ford in May is very small and is less than the decline noted in April, and production from the Bakken shale remains flat despite the severe cuts in rigs,” Yahya said.
The Williston Basin has lost 98 rigs since last June while the Eagle Ford Basin has shed 109 rigs.
According to Platts, the price of Eagle Ford crude jumped 34 percent from January and May, with an average price of $57.11 per barrel for the year, down about 38 percent from year-ago levels.
The price for oil produced from the Bakken formation jumped 21 percent from January to May, with an average price of $48.54 per barrel for the year, according to the Platts Bakken assessment.
However, the price of Bakken crude is still down 40 percent compared to the same period in 2014.