- for US rig count to linger above 900, E&P companies would have to increase spending by 70% -- not going to happen; or well costs would have to flip and actually decline -- also, not going to happen
- most E&Ps and majors have already met their production targets for the year (and it's only June)
- operators are now drilling longer laterals (this obviously refers to the Permian; the Bakken is "steady" at two-mile laterals)
- takes twice as long to complete a well as to drill a well (an irrelevant observation; readers understand why)
- in the Permian where operations are moving into the Delaware, pad drilling is used less than elsewhere in the basin
- overall, well costs appear fairly flat this year, though signs of increase are starting to build
- completions make up about two-thirds of a well's cost
- completions need to catch up to a rig count that got ahead of itself
- analyst: the meme that "shale is economic below $50/bbl is false" but I guess, like global warming, if you say it enough times, it becomes the truth
Wednesday, June 21, 2017
Fracking In The Permian -- June 21, 2017
This Rigzone article touches on fracking across all plays in the US but for the most part it concentrates on fracking in the Permian. I will post the data points from the article, again, which seem to be focused on the Permian; readers can decide for themselves how much these data points reflect reality in the Bakken:
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