Topic: Drilling Activity Pullback

EOG Resources, Marathon, and Statoil Dominate Karnes County in Eagle Ford Shale

Karnes county, located in the Eagle Ford, just southeast of San Antonio is the most active county in the play. In this core acreage there are 8 rigs running operated by H&P, Nabors and Patterson-UTI. All of these rigs are drilling horizontal wells for Marathon, EOG Resources, Statoil and Encana. The map below shows the activity in the past month in the county, with the blue pines being permits and the green being completions.Permit Activity Remains Steady in 2016 Permit activity...

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Haynesville DUC Count Declines through 2015 and 2016

In the last piece on uncompleted wells explored North Dakota showing the impacts and trends that the uncompleted wells have on the market. Now how does one figure out the number of uncompleted wells without over or under counting? This article will show the approach of the DUC analysis by using the Haynesville play highlighting some of the difficulties and uses of this data. The chart below shows a glimpse of the outcome of this analysis and where the DUC...

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Midstates Drilling Efficiencies Lead to Lower Rig Count and Well Costs in MidCon

Midstates Petroleum (NYSE: MPO) has focused operations in the Mississippian Lime during the 2015 year. They have focused on reducing well costs through drilling efficiencies and working with suppliers. Production is expected to remain flat into 2016 as the number of completions shrink. The chart below shows the number of permits and completions by month in Oklahoma for MPO.  Mississippian Lime: Reduced rig count due to realized drilling efficienciesWells generating IRR’s of greater then 35% at current well costs Reduced drilling cycle...

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Duc…Duc…Goose: Looking at North Dakota’s Uncompleted Wells and Oil Being Sold Close to $0

Earlier this week Bloomberg reported that low quality crude or sour crude is being sold for next to nothing due to lower pipeline capacity for lower quality products. The low quality crude makes up a small part of Bakken production in which some pipelines are no longer transporting. The producers of the low quality crude are being forced to use higher cost transportation methods like trucks or trains to get their products to the refineries that have the capability to...

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Horizontal Rigs Stay Flat While Vertical Rigs Drop -10.1%

The BHI land rig count declined -0.8% to 827 rigs from last week's 834. The decline this week stems from the vertical rig count, which dropped 11 rigs or -10.1% from last week's 109 rigs. The horizontal rig count stayed flat at 666 rigs and the directional rig count jumped +4 rigs to 63 from last week's 59. The Eagle Ford sank this week by -7 rigs, 4 of which were oil rigs and 3 were gas. Basins with one...

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U.S. Land Rigs Drop to 834

The BHI land rig count dropped -10 rigs (or -1.2%) to 834 rigs from last week's 844. The WTI crude oil price closed last week at about $60 per barrel. Oil-directed rigs dropped -12 rigs (or -1.9%) to 619 from last week's 631. Compared to this time last year, oil-directed rigs are down -58%.Summary of Shale PlaysPermian Basin -0.4% to 232 rigs, compared to last week’s 233 rigs Eagle Ford +2.8% to 110 rigs, from last week's 107 rigs Williston Basin -1.3% to...

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11 Rigs Idled While E&Ps Talk Uncompleted Wells

After a fairly steady week for the commodity markets, the BHI land rig count dropped -11 rigs or -1.3% to 843 rigs from last weeks 854.The Eagle Ford felt the biggest impact this week dropping -5 rigs to 105 rigs from last week’s 510 rigs, all of which were horizontal. Cana Woodford continued to release rigs falling -3 rigs to bring the count to 35 from last weeks 38 rigs. The Permian dropped -2 gas rigs while adding just +1...

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+2.9% Increase in Gas Plays Rig Count

The BHI land rig count has slowed in the decline to only releasing -21 rigs or 2.3% compared to last week. Of the -21 rigs dropped, 20 are oil horizontal rigs. Gas plays have improved, increasing by 6 rigs compared to last week, with the addition of 2 rigs in the Haynesville play. Top losses originate from Texas, Oklahoma, and North Dakota, dropping 4.4% of their rigs compared to last week, all of which are oil rigs.Summary of PlaysPermian Basin...

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