In that post, I referenced this Bloomberg article, from June 19, 2018 -- OPEC has a second shale dilemma (previously posted/linked) but did not include the graphic.
The Bakken’s recovery partly reflects producers working off a backlog of drilled but uncompleted wells (or DUCs, as they’re called). Exploration and production firms can choose not to frack a well that’s already drilled when oil prices are low, in order to save money. In the depths of the crash, Bakken producers’ backlog of uncompleted wells blew out to almost two years’ worth. That has plunged to under seven months:
This is the first time I've seen this metric: "months of inventory" with regard to DUCs. I'm not sure what that means. One would assume it is related to number of frack teams available, or the historical number of DUCs that are reported completed each month. I don't know.
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Artist At Work
Four-year-old Sophia hard at work at TutorTime.
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