Oil production across the seven major U.S. shale plays could climb by 124,000 barrels a day over the next month as drilling continues to boom, the Energy Department said Monday.
More than half of the increase will come from the Permian Basin in West Texas, where daily crude output is expected to climb 3.3 percent to 2.4 million barrels by May, according to the Energy Information Administration.
In the Eagle Ford Shale in South Texas, drillers are set to lift oil production 3.3 percent to 1.2 million barrels a day, the highest level since May 2016. Put together, the Eagle Ford and Permian account for nearly all of the expected production increase.
The EIA’s projection is OPEC’s latest reminder that the U.S. shale industry has caught its footing since oil prices climbed back above $50 a barrel, a development that began after the oil cartel negotiated to cut production across two dozen countries.