The Weekly USA Oil & Gas Update: 22nd September 2015
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The Oil & Gas Weekly is compiled by Todd Erickson. Todd is a veteran executive manager in the North American E&P market.
He has management experience in high-growth oil & gas service organizations performing a leadership role in operations, strategy, and corporate development with a track record of identifying opportunities and best-practices, creating execution plans, then developing effective teams and leaders to execute them.
Learn more about Todd here
Rig Counts - select states with key plays |
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Oil & Gas Prices - Bloomberg/EIA |
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General News |
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Shale oil production flat in August Although production of crude oil from US plays is up dramatically from a year ago, growth has flattened out in the last month, according to Bentek in a recent report. The most prolific shale oil formation, Texas' Eagle Ford, rose 17% from a year ago to 1.7 million bpd, but was up only 23,000 bpd over last month's production. In the Bakken, production dropped 6,000 bpd from last month, although it is up 66,000 bpd from a year ago. Sami Yahya pointed to deferment of completions as a material factor in the lack of growth, stating "[w]hile the US is able to drill more wells now with fewer rigs, some producers are opting to defer completing their wells until better economic conditions are present. In other words, production could begin to decline even if rig activity and number of drilled wells remain steady. This is a crucial risk to current production numbers." If prices do recover, all these uncompleted wells provide a deep backlog for quickly turning on production. Article here |
Unconventional Oil & Gas News |
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Refracking in shale could provide substantial recovery increases Halliburton has been conducting a number of re-fracturing pilot projects across the country recently, with positive results. The process involves going into an existing well and re-completing to reconnect existing fractures and create new ones. "If a horizontal lateral is landed in good reservoir quality, it most probably has potential for a second life," said Halliburton's senior manager Priyesh Ranjan. Halliburton has reported impressive results so far, claiming EUR increases as high as 80% per well compared to new drills. In the new low-crude price environment, expect more innovation like this going forward. Article here
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Environment and Safety News |
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Oil and gas workplace fatalities rise in 2014 According to the Bureau of Labor Statistics, 142 workers died last year in work-related accidents in the oil and gas industry, up from 112 workers in 2013. The 27% annual increase in fatalities is a troubling trend, which some experts correlate with lower crude oil prices. Although major oil producing states Texas, Colorado and Wyoming all saw increases in work-related fatalities, North Dakota saw a 32% decline in their rate. Article here |
Mergers and Acquisitions News |
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Samson Resources files for bankruptcy |
