• 8 minutes U.S. Shale Oil Debt: Deep the Denial
  • 13 minutes WTI @ $75.75, headed for $64 - 67
  • 16 minutes Trump vs. MbS
  • 9 mins Knoema: Crude Oil Price Forecast: 2018, 2019 and Long Term to 2030
  • 7 hours Nuclear Pact/Cold War: Moscow Wants U.S. To Explain Planned Exit From Arms Treaty
  • 7 hours Why I Think Natural Gas is the Logical Future of Energy
  • 7 hours Merkel Aims To Ward Off Diesel Car Ban In Germany
  • 6 hours A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 17 hours Get on Those Bicycles to Save the World
  • 3 hours Iraq war and Possible Lies
  • 23 hours Satellite Moons to Replace Streetlamps?!
  • 1 day Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 23 hours Can “Renewables” Dent the World’s need for Electricity?
  • 13 hours Long-Awaited Slowdown in China Exports Still Isn’t Happening
  • 21 mins EU to Splash Billions on Battery Factories
  • 17 hours Can the World Survive without Saudi Oil?
Why Is This Little-Known Element Up Over 300%

Why Is This Little-Known Element Up Over 300%

Element ‘’V’’, better known as…

Rig Count Rises Amid Oil Price Recovery

Rig Count Rises Amid Oil Price Recovery

The active number of rigs…

Drilling Efficiency Continues to Climb in U.S. Shale

Oil and gas operators are continuing to improve their drilling techniques, leading to increases in total output on a per-rig basis. New data from the U.S. Energy Information Administration’s Drilling Productivity Report projects that both oil and gas production will increase in April 2014 from a month earlier in several major shale plays around the country. Five of six shale plays tracked by EIA’s report have showed an increase in drilling productivity on a per-rig basis over the last few years.

For example, the average rig operating in the Bakken will be able to produce 492 barrels of oil per day next month from a new well, compared to 485 bpd in March. Similar gains are seen for natural gas. An average rig drilling in the Marcellus Shale will be able to produce 6,476 thousand cubic feet of natural gas per day in April, which will be higher than March’s 6,402 thousand cubic feet per day.

Related Article: Colorado Sets US Fracking Rule Precedent

Greater efficiency has allowed the industry to send a record number of rigs to America’s shale plays. New data from Baker Hughes shows that 1,443 oil rigs are currently in operation. The technological improvements that initially sparked the shale gas revolution continue to improve. Even from just a few years ago, precision in horizontal drilling has improved, allowing more rigs to operate in harder to reach fields.

Moving forward, the industry should be in pretty good shape with prices working a bit more in their favor. Oil prices (WTI) have hovered around $100 over the last few weeks. Natural gas prices are much higher than they were at any time in the last four or five years. With production already high and per-rig efficiency continuing to improve, higher prices may support greater drilling activity in shale plays around the country, especially the Marcellus, Utica, and Haynesville shales.

By Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News