I've long lost the bubble on this one -- the importance of drilling for Saudi Arabia, i.e., the importance of the number of active rigs for Saudi Arabia. I remember a lot of interesting posts some years ago regarding how important it was for Saudi Arabia to keep drilling.
But wow. Look at the timing. I don't think one can cut the number of rigs by this degree overnight without a bit of planning and that doesn't even take into effect the time to physically bring down the rigs. Link here.
Interestingly enough the mainstream media posts this data after Saudi Arabia "surprises" everyone by agreeing to cut production. Prince MBS played the mainstream media like a fiddle.
This next year, July, 2021 - June 2022, could be particularly interesting for those watching global drilling.
There's a huge difference among the Supermajors, the NOCs and US shale producers. See this post.
Back to the Bakken:
Saudi Arabia does not have DUCs. A well drilled is a well completed. I don't know the rules in the Permian, but I assume they are similar to those in the Bakken. In the Bakken, oil operators are allowed two years to complete a well after it has been spud. And even then, waivers can be granted to extend that two-year deadline.
In the Bakken (this does not include any Permian data):
the last quarter of the year, 4Q20, the number of wells reported as
completed. Many of these wells in fact were still carried as "not
43 for the month (December, 2020); 99 for the quarter (Oct - Dec, 2020), 764 for the year (calendar year 2020).
Number of wells in North Dakota that are off-line for operational reasons, most recent data, October, 2020:
- DUCs: 724
- completed, but inactive: 2,934
- total off line for operational reasons: 3,658
- producing: 15,512
- total off line for operational reasons (most recent data) / number of wells reported as completed (CY2020): 3,658 / 764 = 4.79, rounded = five years inventory; this is a combination of:
- new wells that will set IP records:
- new wells that will not set records but will be incredible wells, nonetheless
- new wells that are "average"
- good wells that can be better through asset management
- good wells that need to be re-fracked with small re-fracks
- good wells that need to be re-fracked with large re-fracks
- all wells off line but not scheduled to be abandoned that need to be re-fracked
- lousy wells that will never get better; many will be permanently abandoned