/biz/ - Business & Finance

>>55147286
https://oilprice.com/rig-count the chart shows frac spread counts if you click the drop down box and select frac spread. You can compare the frac spread count to the rig count. You can also select production to compare production to rig count. To me it seems that the frac spread has remained pretty stable looking at the 5y chart, while rig count has risen relatively higher and is now beginning to come down more maybe. Sidenote: decline rates in US shale are like 60% in the first year after completion so if the prices aren't on the producer's side the well may never pay out. Rig counts tend to lag oil by like two months due to contracts etc

I don't know much but DUCs are drilled and uncompleted wells. Basically, they are vertical wells that have been drilled but not put into production. In the shale as you know you need to fracture the source rock in order to increase the permeability and get those verticals flowing. In order to "complete" the DUCs they need to be tied in and the shale rock needs to be fracked with horizontal wells. So anyways I think I read from somewhere that there are a bunch of DUCs sitting around that companies may have chosen not to complete for whatever reason. I think that some of those are probably lower quality wells to begin with but maybe some have been left uncompleted for some other reason. And if prices stay relatively low producers will of course make less money, the US shale tends to be swingy as some plays don't pay out much at all when oil is $60 but make fabulous IRRs at $120. So maybe in order to cut CAPEX, there will be less horizontal drilling and more completions since it costs quite a lot to drill a 10k foot well.

Extra charts if you're interested in rig counts
https://boereport.com/us-rig-count/ US rig counts in more detail, basin specific
https://boereport.com/caoec-rig-count/ Canada rig counts
also here's a rig map for Canada which I've never used but cool stuff anyways https://riggertalk.com/drilling_rigs.php