Friday January 3, 2020
In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy and metals sectors. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.
Let’s take a look.
1. Shale wells produce less than expected
• The Wall Street Journal reported that thousands of shale wells are producing less oil and gas than many companies predicted.
• A year ago, the WSJ found that wells from 29 of the largest shale companies are on track to produce 10 percent less oil and gas over their lifetimes than those companies initially predicted. In the waning days of 2019, WSJ updated that conclusion, finding that those wells are on track to produce 15 percent less than expected.
• Whiting Petroleum (NYSE: WLL), for example, told investors in 2015 that its wells drilled in North Dakota would each produce 700,000 barrels of oil and gas over their lifetimes. Based on 2019 data from Rystad Energy, the WSJ found that Whiting’s wells were on track to produce about 590,000 bpd. The most updated data puts that figure at just 540,000 bpd.
• Shale wells are declining faster than expected, and it appears to be an industry-wide problem.
2. Investors flock to platinum
• Investors poured $850 million into ETFs tracking platinum in 2019, the largest annual inflow, according to Bloomberg.