Utah State

Drilling Statistics

State of Utah and Uintah Basin Drilling Data

In a Nutshell...

The winter slow down continued into March. In 2017 the summer pickup didn't start until June due in part to the long, cold and wet Spring. This year should see an earlier pickup with good weather, higher oil prices and lower Nat Gas inventories.

Changes of Note...

Nat Gas inventories peaked lower last fall and even with a mild winter saw a larger draw down. This has resulted in higher prices through the winter of 2017-18 than we saw during the winter of 2016-17. Higher prices and lower inventories should result in more production.

Crude oil prices have remained in the $60 to $65 channel for the month of March.

What to watch...

Drilling in the Uintah Basin remains clustered in the oil bearing formations of western Uintah County and Duchesne County. The imbalance in Nat Gas price and inventory should eventually promote production of Nat Gas. Sources tell us that there are a large number of wells drilled during the boom that have yet to be put into production so, drilling for Nat Gas may be delayed.

If crude oil breaks its channel boundaries to the bottom we could lose rigs or gain them if the channel breaks and settles above $65.

The local recovery will be slow. The Uintah Basin is a relatively small field and the large companies are already engaged elsewhere. The good news is that our projections for local indicators were spot on throughout 2017 as in previous years. We look forward to gains again in 2018.

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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