Austin, Texas (November 17, 2020) — Enverus, the leading oil and gas SaaS and data analytics company, has released its latest FundamentalEdge report which draws heavily from its new Activity Analytics suite.
Leveraging multiple datasets and information sources, Activity Analytics provides near real-time monitoring of operator movements in the U.S., such as when a pad is cleared, when rigs arrive and depart and when frac crews begin well completions.
“Why wait for quarterly earnings disclosures when you can monitor an operator’s movements in near real-time,” asks Rob McBride, senior director of Strategic Analytics at Enverus. “Many industries, but particularly oil and gas, are about who is doing what, when, where and why. But lockdowns and the way the industry has historically done business has been flipped on its head due to the COVID-19 pandemic. However, that cloud of uncertainty has also ushered in new opportunities.”
“There’s very little guessing with Activity Analytics, which provides visibility into key milestones in the lifecycle of an oil and gas well, which should benefit both operators and investors alike. This, coupled with our breakthrough business automation tools, is helping the oil and gas industry not only survive, but thrive. This is what transparency means and the definition of connecting an industry through integrated data, analytics and smart network technologies,” McBride said.
Today’s FundamentalEdge report release follows a string of announcements and product offerings made by Enverus aimed at helping all segments of the industry manage a challenging energy market wrought with price drops and demand destruction tied to the COVID-19 pandemic. Members of the media can download a preview of the full report or contact Jon Haubert to schedule an interview with one of Enverus’ expert analysts.
Key takeaways from the report:
- Both rig and frac crew activity fell sharply in the first half of 2020 as the ill-timed Saudi-Russia price war coincided with the rapid spread of COVID-19 around the globe. Fortunately, the Saudi-Russia price war was short-lived, and the OPEC+ group ultimately approved deep production cuts, but the global pandemic and resulting lockdowns cut deeply into global petroleum demand, driving steep reductions in active rig counts. Even though the lockdowns were eased in the second quarter and some semblance of normal economic activity has since returned, the recovery witnessed in the U.S. oil patch has been mixed so far.
- The U.S. rig count has recovered only modestly since it bottomed out in July. Meanwhile, frac crew activity has picked up strongly in certain parts of the country. The main driver of the increase in frac crew activity (which bottomed out in May) has been the Permian. Competing with some of the best acreage in the country in terms of economics, operators in the region have been able to restart some activity as prices have climbed back to near $40/bbl.
- To no surprise, the main areas of the Permian seeing a comeback are the Midland and the Delaware basins, particularly in the North Gas and Midland Central sub-plays.
- Frac crew activity within the Delaware has seen volatility within the last year. Historically, the majority of the frac crew activity was seen in the North Gas window. However, in the back half of 2019 an uptick was seen in the North Oil window, and it has consistently competed with the North Gas window as the leader for frac crew activity since. In September, for the first time since April, the North Gas window took over again as the area with the majority of the frac crew activity in the Delaware.
Enverus is the leading energy SaaS company delivering highly-technical insights and predictive/prescriptive analytics that empower customers to make decisions that increase profit. Enverus’ innovative technologies drive production and investment strategies, enable best practices for energy and commodity trading and risk management, and reduce costs through automated processes across critical business functions. Enverus is a strategic partner to more than 6,000 customers in 50 countries. Enverus is a portfolio company of Genstar Capital. Learn more at Enverus.com.