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EIA: US crude output surpasses record in April

Nation reached record production of 11 million bpd less than a year ago, EIA said

Crude output in the US reached a record 12.2 million barrels per day in April, marking the first time that the nation has surpassed the 12 million bpd milestone, according to recent data from the US Energy Information Administration.

The production record comes less than a year after US crude output exceeded 11 million bpd in August 2018, the EIA said.

Several records were set in April across the US, with the state of Texas, partly home to the prolific Permian basin, reaching output levels of 4.97 million bpd.

The Permian leads the nation’s crude production growth, accounting for more than half of Texas’ output with 63% and around 98% of output in New Mexico.

Texas’ oil production grew by 1.1 million bpd, or about 28%, from January 2018 through April 2019, despite pipeline capacity constraints in the Permian. The basin’s month-over-month growth averaged around 100,000 bpd for almost all of 2018, the EIA said.

New Mexico, where the Permian lies in the south-east part of the state, saw production growth of 345,000 bpd, or a 64% increase.

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Onshore production is driven mainly from tight formations using horizontal drilling and hydraulic fracturing techniques, the EIA said. Production from these formations accounted for 61% of the total output in the US, or about 7.4 million bpd, according to the report.

The Permian is forecast to average about 4.4 million bpd in 2019, the EIA said, an increase of 920,000 bpd from the 2018 average.

Another record was reached offshore in the Gulf of Mexico with production hitting 1.98 million bpd in April. The region is expected to average 1.9 million bpd this year, driven by 14 new fields that were brought online in 2018. Nine new fields are anticipated to come online in 2019. More than 200,000 bpd is expected from the 23 fields this year, the EIA said, as the region is the second-largest contributor to crude output growth from 2018 to 2019.

The state of Oklahoma also reached a record output of 617,000 bpd for April. The state houses the Scoop and Stack shale plays.

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