EIA plan to expand production reporting could benefit the industry

Better visibility into production trends will help oil and gas companies identify and act on new opportunities.

The U.S. Energy Information Administration (EIA) recently revealed that it intends to begin releasing monthly production estimates for as many as a dozen states that are currently on less frequent reporting schedules.

Monthly updates are already produced for those states that have prominent histories as major energy producers, such as Texas, Louisiana and Alaska. In contrast, Pennsylvania's output data is currently updated every six months, while reports for lesser producers such as Ohio and West Virginia are only issued once per year.

On Monday, EIA spokesperson Jonathan Cogan told reporters that the agency is still working out the specifics of its plan to improve the consistency of production information. Cogan was unable to divulge the full list of states that will be included, but he did indicate that Pennsylvania will be among the states to see more frequent reports.

The EIA gets the data for its production estimates by periodically polling a sample group of major producers in each state. This is good news for the industry, as companies can use this information to analyze trends, discover emerging opportunities and plan for the future.

This explains why the EIA's plan is already receiving support from industry stakeholders. For instance, following the agency's announcement on Monday, the Marcellus Shale Coalition expressed its approval. In a press release, Kathryn Klaber, the organization's president, said that "no one should have to wait six months" to get updated production information.

"We certainly support EIA's desire to have Pennsylvania be where other states are in terms of more frequent reporting," Klaber added.

With better visibility into fast-growing oil and gas markets, companies will be able to more effectively pursue new drilling opportunities. Furthermore, oilfield equipment manufacturers and service providers will be able to ensure that they are positioned to support well operators in areas where exploration and production activities are on the rise.

This is critical for ensuring that the industry's growth is able to remain on a sustainable trajectory, as producers depend on a wide range of key support services to operate their oil and gas wells in a safe, efficient manner.

For instance, drill stem testing must be occasionally performed in order to ensure that a project is still viable and able to achieve maximum output. Hydraulic jet pumps can be particularly effective in conducting well tests and promoting high production levels at new or established wells.

What makes the jet pump so useful is its versatility. Even in wells where damaged casing makes the use of other artificial lift solutions ineffective, hydraulic jet pumps can be deployed successfully.