The Permian bottleneck and differentials* are impacting the frac crew
count and well completion numbers, according to Westwood
Global Energy Group’s (Westwood) SatScout service. The service from
Westwood generates pad construction, drilling rig on location, and frac
crew on pad data for the Permian through proprietary, machine learning
based analysis of daily satellite imagery.
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In the above figure, "Reported & Observed" represents confirmation of regulatory filings and SatScout observed completion activity. The "SatScout Observed" indicate visual confirmation of a frac crew on a single-well or multi-well pad but not yet reported. (Graphic: Business Wire)
In September, the number of observed well completions decreased 6% to
472 wells compared to 502 in the previous month and 510 wells completed
during the peak month of June 2018.
This decrease in activity equates to a loss of 185,000 tons of frac sand
demand for the month and a decline in 375 million gallons of water
demand for September fracturing jobs.
“The Delaware and Midland Basins are paramount to the US shale story,”
said Boyd Skelton, Vice President of Operations for Westwood Global
Energy Group. He added; “The public and private E&Ps we monitor are
feeling the constraints in the Permian market. You can see the softening
demand for horsepower, frac sand, and water based on the decline in last
month’s observed completions. The market is fluid with operators acting
swiftly to changing conditions.”
The top 15 most active Permian operators by number of wells completed in
2018 include 13 public and 2 private operators. In September, the top 15
operators accounted for 46% of all activity and declined by 8% from the
previous month. One operator’s well completion activity more than halved.
Using daily satellite imagery, machine learning, and the Westwood team
of analysts, SatScout can identify when an operator has constructed a
pad, rigged up for drilling, or started fracturing the well with a frac
crew. Critically, SatScout provides notifications of activity for public
and private oil and gas operators before the information is reported in
quarterly earnings, investor presentations, or via state regulatory
organizations.
Westwood’s daily monitoring of the Permian Basin provides visibility
into the number of frac spreads, well completions, and operator activity
for the world’s most prolific oil growth region. Visit http://energentgroup.com/satscout-proprietary-well-completions-data
- Ends –
Notes to Editors
* Limitations to the Permian Basin production
takeaway capacity are causing a bottleneck in the Permian i.e.
production can only continue to grow as long as the infrastructure is
there to support it. Differentials refers to the discount between WTI
and Brent which has surged to over $10 a barrel since July 2018.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181021005017/en/
Copyright Business Wire 2018
Source: Business Wire
(October 22, 2018 - 1:30 AM EDT)
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