By September 19, 2018 0 Comments Read More →

Technology And Efficiency Gains Create A ‘New Normal’ For U.S. Shale

The hits just keep on coming from the U.S. Energy Information Administration (EIA). As the accelerating pace of technological advancement in the domestic oil and gas industry results in steadily-growing per well recoveries and efficiency gains, the numbers documenting the results take on an almost incomprehensible air.

These are amazing data points, and don’t include many others that could be noted, such as the fact that Texas’s oil production in June of this year (3.15 million bopd) surpassed that of every OPEC nation other than Saudi Arabia and Iraq. One of the most impressive facets of the rapid rise in U.S. production since 2016 is that it has been achieved with an active rig count that is about 40% lower than it was just a half-decade ago. This reality demonstrates how important technological advancement and efficiency gains are to the oil and gas industry.

The Haynesville Shale data point is particularly instructive in this regard. According to the DrillingInfo Daily Rig Count, the number of drilling rigs active in the Haynesville region has remained essentially unchanged over the past year. Yet, the EIA data shows Haynesville gas production ramping up from 4.2 bcf per day to about 6.5 bcf per day over that period time, an amazing 50% increase in just a year. That is truly stunning for a play area that was almost dormant for three years beginning in mid-2013…

 

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