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Sunday, October 18, 2015

New Poll: At What Rate Could DUCs Be Fracked During First Six Weeks Of Next Turnaround -- October 18, 2015

With regard to this next poll, let me say upfront: "I have absolutely no idea." I don't know if anyone does.

This is the question: At what rate could DUCs be fracked during first six weeks of next turnaroud?

These are a few parameters and miscellaneous comments:
  • right now the "average" number of wells coming on line each day: about one new well and three DUCs / day  -- 4 / day or about 28 wells/week (I may be way off on that)
  • there may be no turnaround for several years (though I bet the industry looks a lot better in 2017 than it does in 2015)
  • a turnaround in fracking won't occur during the winter months regardless of the price of oil
  • the earliest we might see any turnaround in fracking would be early next spring / next summer (2016)
  • I don't think anyone has any good handle on "capacity" of fracking in the Bakken right now (fracking companies have disappeared, cut back, in the middle of mergers) 
  • the effect of high volume proppant on the  rate of fracking 
If the operators in North Dakota are to complete 1,600 wells / year (out of about 2,000 permits), that works out to about 30 new wells each week, so one would think the minimum number of wells coming on-line in the next turnaround would be well above 30.

So, I'll throw it out there just for "grins."

I suppose there's a corollary, but I won't ask for now: if/when there is a turnaround, will DUCs or newly-drilled wells take precedent in fracking? This may be a no-brainer; I don't know.

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