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Lynn Helms - Director's Cut

Feb 14, 2020


Lynn HelmsOil Production
December 45,746,231 barrels = 1,475,685 barrels/day 
November 45,571,107 barrels = 1,519,037 barrels/day (all-time high)

Gas Production
December 94,854,574 MCF = 3,059,835 MCF/day
November 94,097,559 MCF = 3,136,585 MCF/day Gas (all-time high)
 
The drilling rig count was very stable in the mid 60’s for the first half of the year. Based on oil price, capital availability, and gas capture operators implemented plans to 10-12 fewer rigs second half of 2019. Industry projects a rig count in the mid 50’s for all of 2020.

The number of well completions has stabilized at a lower monthly number due to weather, gas capture, and oil price.  

Lower crude oil price, gas capture, workforce, and competition with the Permian and Anadarko shale oil plays for capital continue to limit drilling rig count. Utilization rate for rigs capable of 20,000+ feet is 50-60% and for shallow well rigs (7,000 feet or less) 35-45%.

Drilling permit activity has slowed down due oil price and gas capture. Operators continue to maintain a permit inventory that will accommodate varying oil prices for the next 12 months.

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