Reeves County: Permitting Cut in Half & Completions Continue to Fall
Activity has migrated into the Permian due to some of the lowest breakeven points in the industry but that doesn’t mean new drilling activity has held up. Reeves county has taken a hit with lower well completion activity, too, in this sub $50 commodity environment. Even with reported breakeven prices around $35 per barrel, operators continue to release rigs.
Since the start of 2016 it has had 13 completions from operators like EOG Resources (NYSE: EOG), Pioneer Natural Resources (NYSE: PXD) and Apache (NYSE: APA), down from 112 from the first four months of 2015*. Below is a map of activity for the past three months with the blue pins being permits and green being completions.
Permit Activity Declines by Half
In Reeves county, drilling permits declined by -50% from March of 2015 to March of 2016. Some operators they have continued to permit in this past month include Carrizo, Apache, BHP and Anadarko all of which were issued 3 permits. In the past year, there have been 370 permits issued with 307 of them being for wells between 10,000 to 15,000 feet.
Superior Well Services Gains Market Share in Reeves County
Although completion numbers have dropped off significantly as of today, it is expected that the Q1’16 number will increase slightly due to a lag in reporting. The number of frac jobs per quarter has continued to decline which is not a surprise but what is interesting is the pressure pumpers who are completing those jobs. Schlumberger continues to be at the top along with Halliburton in the past two quarters. A pressure pumper to keep an eye on in the coming quarter in Superior Well Services who has gained market share through the last two quarters of 2015 and into 2016.
*Number of completions is expected to increase due to a lag in reporting
Find more drilling & completion activity in Reeves county and across the Delaware Basin with our research tools.