Utah State

Drilling Statistics

State of Utah and Uintah Basin Drilling Data

In a Nutshell...

Crude oil prices are still channeling between $65-$70. This seems to be the range at which oil production is currently profitable and is causing a slight surge in crude production in our area.  There are currently 5 drilling rigs operating in the Uintah Basin, all of which are in Duchesne county drilling for oil.  There have only been 2 Nat Gas wells drilled in Uintah County in 2018.

Changes of Note...

Two rigs were stacked in Uintah County in July and another two in August.  Nat Gas inventories are rising as usual during the summer months but so are prices which tells us there is much heavier consumption by industry, probably due to growth in the economy.

What to watch...

Current demand from the growing economy is causing previously drilled wells to be put into production. Remember, Nat Gas is used widely in industry. It's not just for heating homes. As the economy grows so will the use of Nat Gas.

If crude oil breaks its channel boundaries the market is quickly correcting it. Due to that effect, we probably won't see much if any increase in drilling rigs on the Duchesne County side. If crude breaks out of the $65-$70 range and stablizes we will see a change. If it's on the upside there will be more rigs. If it moves to the downside (which is doubtful) there would be less drilling. Right now, producers are content with current levels of profit on crude at current demand levels.

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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