Utah State

Drilling Statistics

State of Utah and Uintah Basin Drilling Data

In a Nutshell...

All indicators are holding stable. Crude oil prices are still channeling between $65-$70. Any movement outside of that range is soon corrected. EOG recently withdrew their BLM project application for the Chapita Wells project which was proposed to drill 2,800 new wells. EOG stated that the withdrawal of the application was due to current low prices and high inventory in Nat Gas.

Changes of Note...

There's not a lot new this month. We are holding steady at 8 drilling rigs. There was a very slight increase in the rate of completed wells over last year's numbers Other than that we seem to have hit a plateau.

At this writing crude oil prices are at $73. I the pattern holds, more production will come online increasing the inventory and reducing the price.

What to watch...

We had projected more Nat Gas exploration due to previously drilled wells being put onling to fill demand. With the cancelation of the Chapita Wells project, it seems less likely we will see any improvement in the near term.

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. 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

back