Wells drilled but not completed continue to fall

The number of wells drilled but not completed (DUCs) fell for the fourth month running. At the end of June, the total number of DUCS was 8,248, down 41 on the (slightly restated) prior month. This is according to the latest Drilling Productivity Report from the Energy Information Administration (EIA). The report covers key onshore unconventional (shale) plays.

Interestingly, the peak number of DUCs, which occurred in February, has been revised down by over 100 from last month (from 8,416 to 8,313).

After falling last month, completions rose by four to 1,383, though last month’s number was revised down by 16.

The EIA is projecting production of 8,496,000 barrels per day (bpd) for July. That’s up 61,000 on June. For August, the projection is 8,546,000. Although production number for June is up 1.25 million bpd year-over-year, the growth is slowing down dramatically. In 2018, the average monthly growth over the previous month was 135,000 bpd.  So far this year it is 41,000 bpd.

While May & June reported production numbers are similar to the report last month, there were downward revisions for January (53,000), February (88,000) and March (72,000).

For context, overall US oil production was 12.2 million bpd in April 2019, the first time it has exceed 12 million bpd. This includes nearly 2 million barrels from the Federal waters of the Gulf of Mexico, as well as other conventional areas such as California (451k) and Alaska (475k). The Gulf of Mexico is up 400,000 bpd on April 2018.




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