Tag Archives: Completions

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.

https://www.eia.gov/petroleum/drilling/

 

 

Wells drilled but not completed fall for the second month running

Allan D. Hasty

The number of Wells drilled but not completed (DUCs) fell for the second month running. At the end of April, the total number of DUCs was 8,390, down 43 on the restated prior month. Last month’s number was revised down by 67 DUCs from what was originally reported. This is according to the latest Drilling Productivity Report from the Energy Information Administration (EIA).

Note that, every month, the EIA restate prior months’ figures, with revisions going back up to 4 years. 

The EIA is projecting production of 8,411,000 for May, up 82,000 bpd on April. This is down 49,000 bpd on the forecast for May from last month.  They are projecting 8,494,000 bpd for June, up 83,000 bpd on May.



Last month’s report contained a big surprise in that the EIA restated oil production for the first quarter downwards by an avearge of 190,000 bpd a month. This month’s report revises down January-April production further by an average of 60,000 bpd.

For the third month running, overall oil production in the Anardarko Basin is forecast to fall as declines from legacy wells are greater than the production from new wells. Production from the Eagle Ford is forecast to decline slightly in June as well.

https://www.eia.gov/petroleum/drilling/

Wells drilled but not completed fall for the first time in a year

Allan D. Hasty

The number of Wells drilled but not completed (DUCs) fell for the first time in a year. At the end of March, the total number of DUCs was 8,500, down 4 on the restated prior month. Last month’s number was revised down by 72 DUCs from what was originally reported. This is according to the latest Drilling Productivity Report from the Energy Information Administration (EIA).



The number of completions in the 7 major onshore producing areas rose by 65 to 1,392, the highest since January 2015. The Permian Basin accounted for most of this, though all regions posted increases.

Note that, every month, the EIA restate prior months’ figures, with revisions going back up to 4 years. 

The EIA is projecting production of 8,379,000 for April, up 88,000 bpd on March. The big surprise in the report is that the EIA restated oil production for the first quarter. January was revised downwards by 145,000 bpd, February by 214,000 bpd and March by 218,000 bpd. They are projecting 8,460,000 bpd for May, up 80,000 bpd on April.

The other point of interest in the report is that, for the second month running, overall oil production in the Anardarko Basin fell as declines from legacy wells were greater than the production from new wells. The Anardarko Basin is supposedly the hottest play outside the Permian, but these results don’t show that.

https://www.eia.gov/petroleum/drilling/

Shale completions surge to highest level in nearly 4 years

Allan D. Hasty

The number of completions in the 7 major onshore producing areas rose by 113 to 1,325, the highest since March 2015. The Permian Basin accounted for most of this, though all regions posted increases. This is according to the latest Drilling Productivity Report from the Energy Information Administration (EIA).

The number of Wells drilled but not completed (DUCs) rose by the lowest increase in 9 months. At the end of February, the total number of DUCs was 8,576, up 93 on the restated prior month. Last month’s number was revised down by 315 DUCs from what was originally reported. Most of the revision was in the Permian Basin.

Note that, every month, the EIA restate prior months’ figures, with revisions going back up to 4 years. 

The EIA is projecting production of 8,508,000 bpd for March, up 94,000 bpd on February. That’s also up 100,000 on what they projected last month for March. They are projecting 8,593,000 bpd for April.

In last month’s report, the EIA made headlines when it projected that the Permian Basin would pass 4 million bpd in March for the first time. Surprise! The EIA has revised its numbers and the Permian actually passed that milestone in January!

https://www.eia.gov/petroleum/drilling/