High-grading is leading the way to honey wells in the core fields in the most productive oil & gas plays.
For an example, let’s take a look at oil & gas permitting activity for the last 30 days across the USA.
This heat map clearly shows the development of some defined “honey spots” for drillers. We see the dual Permian foci on the Midland and Delaware Basins in West Texas and New Mexico; a continuing Marcellus/Utica concentration of activity in southwestern Pennsylvania and eastern Ohio; Niobrara basin activity tightening up around a few parts of Colorado and Wyoming; the Bakken in western North Dakota; and the ongoing drilling in California.
The deepest orange in the southern part of Texas is the honey spot of the Eagle Ford, Karnes County, TX. If we look at Cumulative Production (20:1 BOE) in the Eagle Ford broken down by county for the past five years, we see that Karnes has always been the best yield, followed by Dewitt, LaSalle and Dimmit Counties.
Image Source: Drillinginfo’s DI Analytics Production Dashboard
Drillinginfo’s DI Index of New Production Capacity, along with its accompanying perspective for the month of October, highlights how much heavy lifting Karnes County is doing vs. the rest of the Eagle Ford – historically Karnes accounts for 15-20% of New Production Capacity, however in September that percentage has spiked to 30%!
A little deeper exploration of Top Operator New Production Capacity in Karnes County this past month reveals 4 operators (Pioneer, EOG, ConocoPhillips and Encana) are averaging over 1000 BOE per well drilled, and Pioneer and Encana combined have brought on 20 such wells:
Image Source: Drillinginfo’s New Production Capacity Reports
Operators with access to grade A acreage continue to focus activity in rock most likely to produce maximum hydrocarbon recovery with lower costs to maximize cash flow. Lower oil field service costs in the current environment may explain increased efforts in these areas even as overall activity declines nationwide.
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