oilfield insights

Increasing Pad Density in Eagle Ford

Operators regularly report that they are gaining efficiencies and saving CAPEX by increasing the number of wells per pad. This impacts all areas of the supply chain and further decouples the notion of “one sale, one well” for oilfield service companies.The following charts illustrate the increase in the well density per pad by the year the wells are permitted.Key highlights include the following:Shift in 2-well pads making up almost 50% of the multi-well pads in 2011 to below 25% in...

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7 E&Ps Fighting Through 2015 Low Commodity Prices

As third quarter earnings season starts we take a look at where some operators are in their drilling and completion programs and begin to get a peak at 2016 expectations. Check back for updates as operators and oilfield service companies update their positions in the current environment.  Antero Resources Expects 25% Production Growth Antero Resources (NYSE: AR) continues to cover production with 94% covered for the 2015 year and looking ahead to 2016 they expect 25% to 30% production growth having 1,793...

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Haynesville Permits Increase 81% in September Over August Activity

During the month of September there were 67 permits issued in the Haynesville. This was almost doubled compared to August which had 37 permits issued and closed the month out with 26 rigs running according the the BHI land rig count. At this time last year, there were 15 permits and 43 rigs in the Haynesville.The top permitting county this past week was Red River which issued 2 permits to Vine Oil & Gas. The most active week in September was...

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Horizontal Rigs Decline -2.9%

The total US Land Rig count was down -23, -2.9% last week with -18 horizontal rigs released. The horizontal rig count dropped to 598, -55% change compared October 2014.More discussions this week about the fall redetermination period. Each spring and fall, banks that lend to oil and gas companies do what's called a "redetermination." The banks calculate how much oil & gas companies can borrow based on reserves, commodity prices, and what the company has hedged.The redetermination conversations will be less about...

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US Land Rigs Falls Below 800

Permian Remains Strong while Bakken & EF Decline The first two weeks in September brought some stability to crude prices with WTI between $43 and $47 so far this month. Rig counts in Permian Basin and areas in Oklahoma remained constant (or a bit positive) this week. Permian accounts for 32% of the US Land rig count. Oklahoma stayed at 106 rigs this week, no change from last week.An article on Bloomberg showed the high debt operators that may be at risk going into...

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Refracs: Haynesville Players Show Results

Much has been said about the potential of restimulating or refracturing horizontal wells. E&P's and Oilfield service companies have discussed refractures (refracs) in terms of opportunities. E&Ps view refracturing as a way to increase production of existing assets, as long as the equipment and technology is proven. Oilfield service companies are developing and modifying downhole tools to refracture horizontal shale wells. The first play in the refrac in-depth series is Haynesville. The refrac series will also cover Bakken, Barnett, Niobrara, Eagle Ford, and...

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Permian: Operators Prepare for 2nd Half of Year with New Drilling Permits

The month of August has seen oil prices continue to slide to six year lows dropping into the low $38 range which hasn’t happened since February 2009. Land rig counts as well as permit activity declined too. The Permian had a total of 142 permits issued during the week of the 21st (20150821) this is down -209% from the same week last year which had 439 permits issued.Midland, Lea, and Eddy are Strongest Counties in August The top permitting week in...

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BHI Land Rig Count Climbs +2.1%, Adding +17 Oil Rigs

WTI crude continued its slump in July, entering the month at $56.96 and hovering just above $48 today. In a change of pace this week, the BHI land rig count jumped +2.1% to 830 rigs, from the past week's 813 rigs.Image Source: Bloomberg.com Oil rigs were the driving factor this week, adding +17 rigs, while gas rigs stayed flat at 206 rigs. Operators are expected to react to the recent price slump in their Q2 earnings reports and meetings over the next...

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