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Lynn Helms - Director's Cut

Aug 11, 2017


Lynn HelmsOil Production
May - 32,270,839 barrels = 1,040,995 barrels/day
June - 30,974,839 barrels = 1,032,495 barrels/day (preliminary)
(all-time high was Dec 2014 at 1,227,483 barrels/day)

Gas Production
May - 57,459,353 MCF = 1,853,528 MCF/day
June - 55,494,195 MCF = 1,849,807 MCF/day (preliminary)
(all-time high was May 2017 at 1,853,528 MCF/day

Comments:
The drilling rig count increased five from May to June, then increased three from June to July, and is currently down one from July to today. Operators have shifted from running the minimum number of rigs to incremental increases and decreases throughout 2017, as WTI oil price moves between $40 and $50/barrel. If WTI drops below $45/barrel for more than 30 days rig count is expected to drop.

The number of well completions decreased slightly from 66 (final) in May to 63 (preliminary) in June.

Oil price weakness is now anticipated to last through calendar year 2017. OPEC met the last week of June and decided to extend production cuts for nine months, but compliance has been less than 100%. The markets are watching to see if US shale production offsets OPEC cuts. US crude oil inventories have been dropping rapidly.

Over 99% of drilling now targets the Bakken and Three Forks formations. 

Click here for the full report.

 
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