U.S. shale-gas output increases 24% in year

— Natural-gas production from shale formations rose in May on increased supplies from the Marcellus deposit even after prices fell to a 10-year low, Energy Department data show.

Total output from shale formations in the continental United States averaged 25.58 billion cubic feet a day in May, 24 percent higher than a year earlier and up 1.7 percent from April, according to slides that accompany a presentation the department will make to Congress on Wednesday. Shale production has gained 5.7 percent this year.

Production from shale deposits with oil and other liquids has gained as dry-gas output has declined in response to decade-low prices, the department said in its Short-Term Energy Outlook on July 10. Gas futures on the New York Mercantile Exchange dropped to $1.902 per million British thermal units April 19.

May output from the Marcellus shale in several Eastern states averaged 6.85 bcf a day, up 6.4 percent from the previous month, and gained 28 percent during the first five months of the year. May 2011 production averaged 3.37 bcf daily.

Output at the Barnett shale in Texas was 4.67 bcf daily, from 4.66 billion in April, department data show. Production dropped 1.7 percent versus May 2011.

Fayetteville shale production in Arkansas declined 1.1 percent this year to 2.68 bcf a day. Output averaged 2.69 billion in April and 2.54 billion in May 2011.

Haynesville shale output in Louisiana and Texas averaged 6.92 bcf a day, down from 6.93 billion in April. Production from the region has declined 2.4 percent this year. Output averaged 6.43 bcf a day in May 2011.

The average for Eagle Ford shale gas output in southern Texas was 1.52 bcf a day in May, up from 1.51 billion the previous month. Production has gained 6.3 percent this year. Output averaged 820 million cubic feet a day a year ago.

Woodford shale output in Oklahoma averaged 1.14 bcf a day in May, up from 1.13 billion both in April and during May 2011.

Bakken gas output in North Dakota held steady at 190 million cubic feet a day in May versus the previous month. Production is up 19 percent from a year earlier.

Business, Pages 66 on 07/29/2012

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