[By the way, the 30 million lbs of proppant for a single well has been previously reported on the blog. A big whoop.]
- Well economics continue to improve in all basins with lower well costs and higher initial production numbers
- Better source rock stimulation creates more fracs per foot, which increases initial production and requires additional proppant and fluids
- Matador's most recent Permian wells use 3,000 lbs of proppant per foot, or the equivalent of 30,000,000 lbs of proppant per 10,000 foot lateral
There are 125 rigs in the Permian, 49 in the Anadarko, 30 in the Eagle Ford (Western Gulf), and 24 in the Bakken (Williston).
The number of rigs is a general representation of economics. The better the economics, the more operators are motivated to put capex to work in that play. This is also why daily production has surged by 83% in the Permian and 75% in the Anadarko since 2012.
The jump in Anadarko production has been quite large from late 2015 to year end. When an operators high-grades, it can either be to better acreage in the same play or another. Operators with acreage in other plays are focusing on the Permian and STACK.The rest has been archived.