Thursday, May 11, 2017

EOG Question From A Reader -- May 11, 2017

A reader sent this in as a comment.
EOG currently has zero rigs in the Bakken, any thoughts when they may start up again??
I'm curious if anyone has any thoughts or insight.

Later: it's all about a) DUCs in the Bakken; and, b) a focus on Texas, for now. See comments.

May 14, 2017: not only does EOG have a lot of DUCs, but now as they start to frack those DUCs, EOG has a lot of wells that have gone inactive. When looking for something else, I was surprised to find many EOG wells that had been taken off-line (with "IA-waivers") since 2014 and many additional wells taken off-line recently.

It appears EOG could keep up its Bakken production with simply completing its DUCs and returning many, many wells back to production. 

4 comments:

  1. They have a massive amount of DUC's at this time. They have not said when they will have a rig back but they are continuing to permit, having cases heard, and renewing permits.

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    1. Thank you. I agree with your (unstated) observation: right now it's not so much about rigs drilling new wells, it's a lot of DUCs that needs to be completed. In addition, EOG is, I think, more focused on Texas right now.

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  2. Focused on completions I'm guessing. Tons of DUCs.

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    1. Wow, great minds think alike. Another reader posted a similar thought before seeing your note.

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