BAKU, Azerbaijan, August 20. Liquids supply from the US for 2024 is predicted to reach 19.5 mb/d, with crude accounting for 13.1 mb/d and NGLs for 6.3 mb/d, Trend reports.
According to the data obtained from the International Energy Agency (IEA), in July, US supply experienced a decline of 40,000 b/d, hovering at approximately 19.2 mb/d, primarily due to a decrease in NGL output.
In comparison to the previous year, production increased by 1.1 mb/d, and the year-to-date rise reached 670,000 b/d. Throughout the period from July to the end of the year, the overall US liquid production is anticipated to decrease by 80,000 b/d, as NGLs are expected to incur seasonal losses of 210,000 b/d.
Thus, according to the IEA's forecast, by 2023-end, growth rate will slow down, transitioning from a gain of 1.2 mb/d in 2023 to 450,000 b/d the following year, with LTO (light tight oil) growth decreasing to 440,000 b/d and NGLs to 90,000 b/d. Conventional crude production in the US is projected to fall by 80,000 b/d.
Of the gains witnessed this year, US LTO contributes 720,000 b/d, making up 88 percent of the growth in crude production.
Meanwhile, in late July and early August, multiple publicly listed oilfield service companies and oil and gas producers disclosed their second-quarter earnings.
The key takeaway, affirmed by the most recent Dallas Fed Energy Survey, indicates that larger producers will be better positioned in the latter half of the year to take advantage of any deflation in oilfield service costs, the agency said.
Furthermore, rig operators expect activity levels to remain relatively steady following a 12-percent reduction in drilling rigs compared to the previous year and a 16-percent drop from the peak observed in late November 2022. The expectation for LTO growth is slight from July to the end of the year, projecting a year-end figure of 8.7 mb/d, which is 550,000 b/d higher than the preceding year.
