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US crude oil production efficiency continues… EIA

You are here: Home / Commodity Research / US crude oil production efficiency continues… EIA

January 24, 2020 by Jim Colburn Leave a Comment

Still increasing productivity after all these years!  Here is the EIA’s “Today in Energy”:

”The average new well in each DPR region produced more oil in 2019 than wells drilled in previous years in those same regions. This trend has persisted for more than 10 consecutive years. More effective drilling techniques, including the increasing prevalence of hydraulic fracturing and horizontal drilling, have helped to increase these initial production rates. In particular, well productivity was improved because of the injection of more proppant during the hydraulic fracturing process and the ability to drill longer horizontal components (also known as laterals) and perforate more stages.

Increasing well productivity has supported crude oil production even in years such as 2015, when oil prices fell and rig counts dropped. In 2016, rig counts continued to decline sharply, and total U.S. crude oil production decreased for the first time in 10 years. Fewer wells were drilled; however, those that were drilled were drilled more quickly and located in more productive areas, which led to increasing per-well production.”

 

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Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

 


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