U.S. shale oil production is expected to fall by above 600,000b/d in January 2016 as oil prices remain slashed to seven-year low, according to the US Energy Information Administration’s Drilling Productivity Report published by Reuters.

The US government’s forecast also awaits a decline in natural gas production to the level of 44.0bcf/d at the start of 2016.

The average price of a gallon of gas in the USA has dropped to the lowest since 2009, wrote Chicago Tribune, and energy companies were reported to have laid off above 90,000 workers in 2015.

Despite the reports, U.S. Energy Secretary, Ernest Moniz told CNBC, that the US oil production will recover.

“Our Energy Information Administration expects that the average production this year will still be above 9mb/d so the drop-off is not viewed as precipitous.”

Monez also noted that the US gas production was rising despite lower gas prices, and first LNG exports was scheduled to be marketed in early 2016.

In addition, the EIA’s report forecasts oil production fall in the Eagle Ford play to 1.2mb/d, in Bakken to 1.1mb/d, and in Niobrara plays to 344,000b/d in December, while Permian production rise is likely to continue, Platts reported.