RigData Insights

Gluttonous Supply

  • Wednesday, September 21, 2016
  • Posted By Meagan Wildfong

92116 Source: RigData's RADAR Report | September 15, 2016

The US oil and gas supply glut isn’t going away anytime soon, and continued growth in the US rig count—as of last week, up +145 from the year’s trough and the highest tally since February 5 of this year—will only add to the surplus as eventual commodity price gains tease more drilled but uncompleted (DUC) wells online, exacerbating the glut and effectively capping the potential for further price growth, according to Platts RigData’s RADAR Report.

 

In its Monthly Drilling Productivity Report, the EIA estimates DUCs in the four major oil-dominant regions at 4,117 and at 914 in the three major natural gas-dominant shales, for a total of 5,031 wells that have yet to be completed. DUCs in the Eagle Ford fell by -36 to 1,261, its lowest since January of last year, while DUCs In the Permian Basin rose by +38 to 1,348, the highest since at least December 2013. DUCs in the Marcellus fell by -16 to 642, the lowest since at least December 2013.

 

Call 1-800-627-9785 to subscribe to Platts RigData’s RADAR Report, the leading statistical monitor of overall land rig market activity and drilling trends by region, play, operator, driller, and many other proprietary metrics.

Archives


Topics




Login

Forgot your password?

Retrieve Your Password

Enter your email address and we will send you an email with instructions to reset your password.