Utah State

Drilling Statistics

State of Utah and Uintah Basin Drilling Data

In a Nutshell...

Crude oil prices returned to, and continued to channel between, $65-$70 during the month of October.  The worries over Iranian sanctions turned out to be a paper tiger as other countries immediately increased production to cover any shortage.  Nat Gas prices continue to climb into the fall caused by inventory lows for the season which fell below the prior three years' and well below the prior two years' lowest numbers.

Changes of Note...

Duchesne County is well ahead of last year's rates for applications, spuds and completed wells.  While Uintah County is lagging behind last year.  This is due to the higher demand for oil and slightly lower demand for Nat Gas combined with plentiful untapped Nat Gas wells in the area.

What to watch...

The big story for September was the Iranian sanctions which drove up the price of crude.  The big story for October seemed to be the lack of teeth in the Iranian Sanctions on a worldwide scale.  As sanctions were discussed, many countries, including the USA, ramped up output to take advantage of the higher prices.  Refineries in the Eastern U.S. have now made the switch to producing more fuel oil and less gasoline.  Even so, gasoline prices are turning slightly lower due to the end of the summer driving season and plentiful oil inventories.

Since crude oil did not maintain it's new channel above $70 for a significant amount of time, a new floor in the channel did not occur.  This episode of a flash spike in prices and then a return to the channel tells us that oil prices will stay low for the coming months without the intervention of a major global event.

Annualized = Projected based on current numbers. APD=Application for Permit to Drill, Spudded=Started. APD, Spud and Completed numbers come from the Utah Division of Oil Gas & Mining. Rig numbers come from Baker Hughes. Price and inventory numbers come from the U.S. Energy Information Administration.

 

Drilling Statistics

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