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U.S. drilling creates “industrial inventory” of untapped wells waiting to flow

Published 08/16/2017, 12:59 PM
Updated 08/16/2017, 12:59 PM
© Reuters.  U.S. drilling creates “industrial inventory” of untapped wells waiting to flow
  • Oil companies left another 135 wells dormant in the Permian Basin in July, bringing the inventory of drilled but uncompleted wells to 2,330, up 73% Y/Y - wells that could add hundreds of thousands of barrels to surging U.S. oil output when the wells are brought into production.
  • "You drill, you move on, you frack [and] you get an inventory building," Precision Dilling (NYSE:PDS) CEO Kevin Neveu says. "The shift to multi-well pads has caused an industrial inventory of uncompleted wells to accumulate. The frackers can't keep up with the need."
  • The Energy Department expects Permian Basin production to rise by 64K bbl/day this month to 2.6M, part of the seven major U.S. shale plays that could pump 6.1M bbl/day, up by 117K bbl/day.
  • Among major Permian Basin producers: PXD, CXO, XEC, EOG, PE, DVN, NBL, XOM, CVX, OXY, WPX, RSPP, APC, APA, FANG, SM, EGN, MTDR, QEP, ECA, CPE, LPI
  • Now read: QEP Resources (QEP) Presents At EnerCom Oil & Gas Conference - Slideshow

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