U.S. shale drillers will keep posting strong gains in August and September, with production from shale regions topping 6 million barrels a day, the Department of Energy projected.
The department's Energy Information Administration projected output in several key oil producing regions will grow by 117,000 barrels a day to 6.15 million barrels a day in September. The region's output is seen topping 6 million barrels a day in August.
The forecast for this month is significantly higher than a prior estimate, primarily because the EIA began projecting output for the Anadarko region, which covers parts of Oklahoma and Texas, in its August Drilling Productivity Report. Drillers have recently flocked to the Anadarko because the cost of producing oil there is relatively low.
The latest Drilling Productivity Report from EIA marks the sixth straight month the agency has forecast production growth above 100,000 barrels a day.