OPEC reports July’s oil output was 2 million barrels per day short of demand; DUCs down most in 33 months as fracking at a 54 month high

oil prices managed to end with a small increase in a week of volatile trading after Trump blinked and delayed the tariffs that he had imposed on China that had sent the markets spiraling lower over the past two weeks…after falling 8% into a bear market on Trump’s tariff threats before recovering more than 6% to close at $54.40 a barrel last week, prices of US crude for September delivery overcame fears of a global economic downturn that had pushed prices down to $53.54 early on Monday and moved higher near the close, ending with a gain of 43 cents at $54.93 a barrel, as signals that Kuwait & the Saudis would continue to reduce global supplies supported an afternoon rally…oil prices then shot up more than 4 percent on Tuesday after Trump bowed to recession fears and said he would delay the tariffs on China he’d announced just a dozen days earlier, with the September oil contract ending $2.17 higher at $57.10 a barrel, the biggest one day price jump so far this year…however, oil prices reversed on Wednesday and erased Tuesday’s gains in falling nearly 6% to $53.97 a barrel after overnight industry reports of a surprise crude and gasoline supply increase and shrinking German GDP data were followed by the EIA’s report that crude inventories had indeed increased, before prices steadied in the afternoon to end at $55.23 a barrel, still a loss of $1.87 on the day…oil prices continued sliding on recession fears and Chinese trade threats on Thursday as Trump’s weakness in delaying the tariffs was mocked in the Chinese press, with US crude closing down 1.4% at $54.47 a barrel even as Brent, the international oil benchmark, ended 2.4% lower at $58.05 a barrel…but oil prices rebounded with the markets on Friday after data showed an unexpectedly large increase in US retail sales, but the gains were capped by an OPEC report warning of slowing economic growth ahead, with oil prices settling 40 cents higher at $54.87 a barrel…with Friday’s small gain, oil prices managed to eke out a 0.7% increase for the week, their first weekly gain in three

natural gas prices also managed to end with a small increase, mostly on the back of what was considered a bullish storage reportafter falling for a fourth week in a row and hitting a 39 month low last week, natural gas contracted for September delivery fell 1.4 cents to $2.105 per mmBTU on Monday, despite forecasts that the remainder of August would be warmer and see greater demand than the same period of a year ago…but prices rose 4.2 cents on the same forecast on Tuesday, and then slipped back four-tenths of a cent on Wednesday in a continuation of the volatility as prices tested multi-year lows over the previous two weeks…however, prices jumped nearly 13 cents with the release of the storage report on Thursday and ended the day 8.9 cents higher at $2.232 per mmBTU…however, with the weak storage build dismissed as being due to pipeline issues, gas prices fell back 3.2 cents to end the week at $2.200 per mmBTU, still a gain of 8.1 cents, or 3.8% for the week, the first increase in 5 weeks…

the natural gas storage report for the week ending August 9th from the EIA indicated that the quantity of natural gas held in storage in the US increased by 49 billion cubic feet to 2,738 billion cubic feet by the end of the week, which meant our gas supplies were 357 billion cubic feet, or 15.0% more than the 2,346 billion cubic feet that were in storage on August 9th of last year, while still 111 billion cubic feet, or 3.9% below the five-year average of 2,849 billion cubic feet of natural gas that have been in storage as of the 9th of August in recent years….this week’s 49 billion cubic feet injection into US natural gas storage was significantly below the 57 billion cubic feet injection predicted by analysts surveyed by S&P Global Platts, while it matched the average 49 billion cubic feet of natural gas that have been added to gas storage during the first full week of August over the past 5 years, the 20th such average or above average storage build in the last 22 weeks…however, the 1,560 billion cubic feet of natural gas that have been added to storage over the 20 weeks of this injection season has now fallen behind the record 1572 billion cubic feet of natural gas that were injected into storage over the same 20 weeks of the 2014 natural gas injection season, but still remains well above the other years on record…    

The Latest US Oil Supply and Disposition Data from the EIA

US oil data from the US Energy Information Administration for the week ending August 9th indicated that because our refinery throughput fell while an increase in our oil imports partially offset an increase in our oil exports, we had surplus oil to add to storage for the 2nd week in a row…..our imports of crude oil rose by an average of 566,000 barrels per day to an average of 7,714,000 barrels per day, after rising by an average of 485,000 barrels per day over the prior week, while our exports of crude oil rose by an average of 818,000 barrels per day to an average of 2,683,000 barrels per day during the week, which meant that our effective trade in oil worked out to a net import average of 5,031,000 barrels of per day during the week ending August 9th, 252,000 fewer barrels per day than the net of our imports minus exports during the prior week…over the same period, the production of crude oil from US wells was reported to be unchanged at 12,300,000 barrels per day, so our daily supply of oil from the net of our trade in oil and from well production totaled an average of 17,331,000 barrels per day during this reporting week..

meanwhile, US oil refineries were reportedly processing 17,302,000 barrels of crude per day during the week ending August 9th, 475,000 fewer barrels per day than the amount of oil they used during the prior week, while over the same period the EIA reported that a net of 225,000 barrels of oil per day were being added to the supplies of oil stored in the US….hence, this week’s crude oil figures from the EIA appear to indicate that our total working supply of oil from net imports and from oilfield production was 196,000 barrels per day less than what was reportedly added to storage and what our oil refineries reported they used during the week…to account for that disparity between the apparent supply of oil and the apparent disposition of it, the EIA inserted a (+196,000) barrel per day figure onto line 13 of the weekly U.S. Petroleum Balance Sheet to make the reported data for the daily supply of oil and the consumption of it balance out, essentially a fudge factor that they label in their footnotes as “unaccounted for crude oil”… (for more on how this weekly oil data is gathered, and the possible reasons for that “unaccounted for” oil, see this EIA explainer)….  

further details from the weekly Petroleum Status Report (pdf) indicated that the 4 week average of our oil imports rose to an average of 7,138,000 barrels per day last week, which was still 12.0% less than the 8,116,000 barrel per day average that we were importing over the same four-week period last year…the 225,000 barrel per day increase in our total crude inventories was all added to our commercially available stocks of crude oil, while the amount of oil stored in our Strategic Petroleum Reserve remained unchanged…this week’s crude oil production was reported to be unchanged at 12,300,000 barrels per day even though the rounded estimate of the output from wells in the lower 48 states rose by 100,000 barrels per day to 11,900,000 barrels per day because a 20,000 barrels per day decrease to 433,000 barrels per day in Alaska’s oil production lowered the final rounded national production total by 100,000 barrels per day (EIA”s math, not mine)…last year’s US crude oil production for the week ending August 3rd was rounded to 10,900,000 barrels per day, so this reporting week’s rounded oil production figure was 12.8% above that of a year ago, and 45.9% more than the interim low of 8,428,000 barrels per day that US oil production fell to during the last week of June of 2016…    

meanwhile, US oil refineries were operating at 94.8% of their capacity in using 17,302,000 barrels of crude per day during the week ending August 9th, down from 96.4% of capacity the prior week, but still a refinery utilization rate that is typical for mid summer….however, the 17,302,000 barrels per day of oil that were refined this week were 3.8% below the record 17,981,000 barrels of crude per day that were being processed during the week ending August 10th, 2018, when US refineries were operating at 98.1% of capacity….

with the big decrease in the amount of oil being refined, gasoline output from our refineries was somewhat lower, decreasing by 218,000 barrels per day to 10,203,000 barrels per day during the week ending August 9th, after our refineries’ gasoline output had increased by 5,000 barrels per day the prior week….even so, this week’s gasoline production was just fractionally below the 10,234,000 barrels of gasoline that were being produced daily over the same week of last year….at the same time, our refineries’ production of distillate fuels (diesel fuel and heat oil) fell by 209,000 barrels per day to 5,077,000 barrels per day, after our distillates output had increased by 122,000 barrels per day the prior week….but with this week’s decrease, our distillates production was 4.9% less than the 5,337,000 barrels of distillates per day that were being produced during the week ending August 10th, 2018…. 

with the decrease in our gasoline production, our supply of gasoline in storage at the end of the week fell for the sixth time in 9 weeks and for the 19th time in twenty-five weeks, decreasing by 1,412,000 barrels to 233,760,000 barrels during the week to August 9th, after our gasoline supplies had risen by 4,437,000 barrels over the prior week….our gasoline supplies also decreased this week because the amount of gasoline supplied to US markets increased by 282,000 barrels per day to 9,932,000 barrels per day, and because our imports of gasoline fell by 412,000 barrels per day to 805,000 barrels per day, while our exports of gasoline fell by 324,000 barrels per day to 453,000 barrels per day…after this week’s decrease, our gasoline supplies remained fractionally higher than last August 10th’s inventory level of 233,128,000 barrels, and are still roughly 4% above the five year average of our gasoline supplies at this time of the year…

with the decrease in our distillates production, our supplies of distillate fuels fell for the 13th time in the past 22 weeks, decreasing by 1,938,000 barrels to 135,513,000 barrels during the week ending August 9th, after our distillates supplies had increased by 1,529,000 barrels over the prior week…our distillates supplies decreased this week because our imports of distillates fell by 127,000 barrels per day to 126,000 barrels per day while our exports of distillates rose by 186,000 barrels per day to 1,621,000 barrels per day, and while the amount of distillates supplied to US markets, a proxy for our domestic demand, decreased by 27,000 barrels per day to 3,859,000 barrels per day….but even after this week’s inventory decrease, our distillate supplies were still 5.1% higher than the 128,989,000 barrels of distillates that we had stored on August 10th, 2018, while still around 3% below the five year average of distillates stocks for this time of the year…

finally, with the decrease in our refinery throughput, our commercial supplies of crude oil in storage rose for the second time in nine weeks but for the seventeenth time in 30 weeks, increasing by 1,580,000 barrels, from 438,930,000 barrels on August 2nd to 440,510,000 barrels on August 9th…after that increase, our crude oil inventories were roughly 3% above the five-year average of crude oil supplies for this time of year, and were about 32% higher than the prior 5 year (2009 – 2013) average of crude oil stocks for the 2nd Friday of August, with the disparity between those comparisons arising because it wasn’t until early 2015 that our oil inventories first rose above 400 million barrels…since our crude oil inventories had generally been rising since this past Fall up until the most recent 9 weeks, after generally falling until then through most of the prior year and a half, our oil supplies as of August 9th were still 6.4% above the 414,194,000 barrels of oil we had stored on August 10th of 2018, but at the same time were 5.6% below the 466,492,000 barrels of oil that we had in storage on August 11th of 2017, and 10.2% below the 490,461,000 barrels of oil we had in commercial storage on August 12th of 2016…  

OPEC’s Monthly Oil Market Report

this week we’re also going to review OPEC’s August Oil Market Report (covering July OPEC & global oil data), which was released on Friday of this past week and is available as a free download, and hence it’s the report we check for monthly global oil supply and demand data…the first table from this monthly report that we’ll look at is from the page numbered 60 of that report (pdf page 70), and it shows oil production in thousands of barrels per day for each of the current OPEC members over the recent years, quarters and months, as the column headings indicate…for all their official production measurements, OPEC uses an average of estimates from six “secondary sources”, namely the International Energy Agency (IEA), the oil-pricing agencies Platts and Argus, ‎the U.S. Energy Information Administration (EIA), the oil consultancy Cambridge Energy Research Associates (CERA) and the industry newsletter Petroleum Intelligence Weekly, as a means of impartially adjudicating whether their output quotas and production cuts are being met, to thus avert any potential disputes that could arise if each member reported their own figures…

July 2019 OPEC crude output via secondary sources

as we can see from the above table of oil production data, OPEC’s oil output fell by 246,000 barrels per day to 29,609,000 barrels per day in July, from their revised June production total of 29,855,000 barrels per day…however that June figure was originally reported as 29,830,000 barrels per day, so that means their production for July was actually a 221,000 barrel per day decrease from the previously reported production figures (for your reference, here is the table of the official June OPEC output figures as reported a month ago, before this month’s revisions)…

as you can see, the Saudi’s 134,000 barrel per day output cut made up the lion’s share of OPEC’s July decrease. but most other OPEC members also cut their output proportionately as well…however, that relatively small 32,000 barrels per day increase in the output from Iraq that you see above means they are well over thei output allocation as originally determined for each OPEC member after their December 7th, 2018 meeting, when OPEC agreed to cut 800,000 barrels per day as part of a 1.2 million barrel per day cut agreed to with Russia and other oil producers, and which were extended at their July 1st meeting a a little over a month ago…in addition, despite the small decrease in July output from Nigeria, their output also remains well above quota, as can be seen in the table of OPEC production allocations we’ve included below:

February 6 2019 Platts on OPEC allocations

the above table came from a February 6th post on Saudi cuts and OPEC allocations at S&P Global Platts, and it shows average daily production quota in millions of barrels of oil per day for each of the OPEC members as was agreed to at their December 2018 meeting and has now been extended through March 2020 as of their recent meeting….note that Venezuela and Iran, whose oil exports are being sanctioned by the Trump administration, and Libya, which has been beset by a civil war, are exempt from any production quotas, and that among them only Libya has been producing a bit more than they did in the 4th quarter of 2018, which you can see in the third column of the OPEC production table above…

the next graphic from the report that we’ll include shows us both OPEC and world oil production monthly on the same graph, over the period from August 2017 to July 2019, and it comes from page 61 (pdf page 71) of the August OPEC Monthly Oil Market Report….on this graph, the cerulean blue bars represent OPEC oil production in millions of barrels per day as shown on the left scale, while the purple graph represents global oil production in millions of barrels per day, with the metrics for global output shown on the right scale… 

July 2019 OPEC report global oil supply

despite the big decrease in OPEC’s production from what they produced a month ago, their preliminary estimate indicates that total global oil production still rose by 0.23 million barrels per day to 98.71 million barrels per day in July, an increase that came after June’s total global output figure was revised down by 80,000 barrels per day from the 98.56 million barrels per day global oil output that was reported a month ago, as non-OPEC oil production rose by a rounded 480,000 barrels per day in July after that revision, with higher oil production from Canada, Norway, the UK, Australia, India, Brazil and Azerbaijan the major reasons for the non-OPEC output increase in July…. the 98.71 million barrels per day produced globally in July was also 0.71 million barrels per day, or 0.7% higher than the revised 98.39 million barrels of oil per day that were being produced globally in July a year ago (see the August 2018 OPEC report (online pdf) for the originally reported July 2018 details)…with the decrease in OPEC’s output, their July oil production of 29,609,000 barrels per day slipped to 30.0% of what was produced globally during the month, down from the revised 30.3% share they contributed in June….OPEC’s July 2018 production was reported at 32,323,000 barrels per day, which means that the 13 OPEC members who were part of OPEC last year, excluding Qatar from last year’s total and new member Congo from this year’s, are now producing 2,424,000 fewer barrels per day of oil than they were producing a year ago, when they accounted for 32.9% of global output, with a 1,524,000 barrel per day drop in output from Iran, a 689,000 barrel per day decrease in the output from Saudi Arabia, and a 534,000 barrel per day decrease in the output from Venezuela from that time more than offsetting the year over year production increases of 414,000 barrels per day from Libya, 197,000 barrels per day from Iraq, and 112,000 barrels per day from the Emirates…   

despite the 230,000 barrels per day increase in global oil output that was seen during July, there was still a large shortfall in the amount of oil being produced globally during the month, as this next table from the OPEC report will show us…   

July 2019 OPEC report global oil demand

the table above came from page 33 of the August OPEC Monthly Oil Market Report (pdf page 43), and it shows regional and total oil demand in millions of barrels per day for 2018 in the first column, and OPEC’s estimate of oil demand by region and globally quarterly over 2019 over the rest of the table…on the “Total world” line in the fourth column, we’ve circled in blue the figure that’s relevant for July, which is their revised estimate of global oil demand during the third quarter of 2019…

OPEC has estimated that during the 3rd quarter of this year, all oil consuming regions of the globe will using 100.69 million barrels of oil per day, which was revised from their estimate of 100.61 million barrels of oil per day for the 3rd quarter a month ago….meanwhile, as OPEC showed us in the oil supply section of this report and the summary supply graph above, OPEC and the rest of the world’s oil producers were still only producing 98.71 million barrels per day during July, which means that there was a shortfall of around 1,980,000 barrels per day in global oil production when compared to the demand estimated for the month

in addition, the downward revision of 80,000 barrels per day to June’s global output that’s implied in this report, combined with the 10,000 barrels per day upward revision to 2nd quarter demand that we’ve encircled in green, means that the 680,000 barrels per day shortfall that we had previously figured for June based on last month’s figures would now be revised to a deficit of 790,000 barrels per day….likewise, the 10,000 barrels per day upward revision to 2nd quarter demand would mean that we’d have to revise our global oil deficit for May to 1,160,000 barrels per day, and revise our global oil deficit for April to 1,030,000 barrels per day…hence, for the 2nd quarter as a whole, the world’s oil producers were producing 937,000 barrels per day less than what was needed

note that in green we’ve also circled an upward revision of 30,000 barrels per day to first quarter demand…that means that the global oil surplus of 190,000 barrels per day we had previously figured for March would have to be revised to a global oil surplus of 160,000 barrels per day…similarly, the 640,000 barrel per day global oil output surplus we had for February would now be a 610,000 barrel per day global oil output surplus, and the 550,000 barrel per day global oil output surplus we had for January would be revised to a 520,000 barrel per day oil output surplus..

our green ellipse above also highlights that OPEC has revised 2018’s oil demand 80,000 barrels per day higher…when demand for 2018 was last revised in April, we recomputed our 2018 figures and figured that for all of 2018, global oil demand exceeded production by roughly 18,040,000 barrels…this revision means that the 2018 shortfall was 80,000 barrels per day higher, or a total shortfall of roughly 47,240,000 barrels of oil for the year as a whole..

This Week’s Rig Count

the US rig count rose for the first time in a dozen weeks and for just the 3rd time in the past half year during the week ending August 16th, but still remains 13.7% lower year to date….Baker Hughes reported that the total count of rotary rigs running in the US rose by 1 rig to 935 rigs this past week, which was still down by 122 rigs from the 1057 rigs that were in use as of the August 17th report of 2018, and less than half of the shale era high of 1929 drilling rigs that were deployed on November 21st of 2014, the week before OPEC announced their attempt to flood the global oil market…

the count of rigs drilling for oil increased by 6 rigs to 770 rigs this week, which was still 99 fewer oil rigs than were running a year ago, and quite a bit below the recent high of 1609 rigs that were drilling for oil on October 10th, 2014…at the same time, the number of drilling rigs targeting natural gas bearing formations decreased by 4 rigs to 165 natural gas rigs, a 16 month low for gas rig activity and down by 21 rigs from the 186 natural gas rigs that were drilling a year ago, and way down from the modern era high of 1,606 rigs targeting natural gas that were deployed on August 29th, 2008…in addition, a rig classified as miscellaneous was shut down this week, leaving none such operating, down from the 2 “miscellaneous” rigs that were drilling a year ago…

the rig count in the Gulf of Mexico was up by 2 to 25 rigs this week, as two more rigs began operating off the shore of Louisiana…that brought the offshore Louisiana count up to 25, making for a net increase of 6 Gulf of Mexico rigs from the 19 rigs that were deployed in the Gulf in the same week a year ago, when 17 rigs were drilling in Louisiana waters and two were deployed offshore from Texas…in addition, there continues to be two rigs deployed off the coast of the Kenai Peninsula in Alaska this week, same number as were drilling off the Alaskan shore a year ago, for a total US offshore rig count of 27, up from the total of 21 offshore rigs that were deployed a year ago…in addition to those offshore, southern Louisiana also saw the startup of a rig drilling through an inland body of water, the first such in 4 weeks, but still down from the 2 ‘inland waters’ rigs active in southern Louisiana a year ago

the count of active horizontal drilling rigs was down by 2 to 815 horizontal rigs this week, which was the least horizontal rigs deployed since February 2nd, 2018 and hence a new 18 month low for horizontal drilling…it was also 107 fewer horizontal rigs than the 922 horizontal rigs that were in use in the US on August 17th of last year, and also well down from the record of 1372 horizontal rigs that were deployed on November 21st of 2014…on the other hand, the directional rig count was up by 3 to 68 directional rigs this week, but those were down by 2 from the 70 directional rigs that were operating during the same week of last year… meanwhile, the vertical rig count was unchanged at 52 vertical rigs this week, and those were down by 13 from the 65 vertical rigs that were in use on August 17th of 2018…

the details on this week’s changes in drilling activity by state and by major shale basin are included in our screenshot below of that part of the rig count summary pdf from Baker Hughes that shows those changes…the first table below shows weekly and year over year rig count changes for the major oil & gas producing states, and the second table shows the weekly and year over year rig count changes for the major US geological oil and gas basins…in both tables, the first column shows the active rig count as of August 16th, the second column shows the change in the number of working rigs between last week’s count (August 9th) and this week’s (August 16th) count, the third column shows last week’s August 9th active rig count, the 4th column shows the change between the  number of rigs running on Friday and the number running before the equivalent weekend of a year ago, and the 5th column shows the number of rigs that were drilling at the end of that reporting week a year ago, which in this week’s case was the 17th of August, 2018…     

August 16 2019 rig count summary

as you can see by the state table above, this week’s one rig increase masked a lot of changes around the country…we’ll start by looking at Texas, where we find 4 rigs were shut down in Texas Oil District 8, which would be the core Permian Delaware, while the rig counts in Texas Oil Districts 7C and 8A, the Permian Midland, were unchanged…that means that the 2 rig increase in New Mexico included one rig in the western-most reaches of the Permian Delaware, and one rig in a basin not tracked separately by Baker Hughes…the 3 rig increase in Louisiana can be accounted for by the 2 added Gulf of Mexico rigs in the state waters, and the inland waters rig start-up we mentioned earlier….for natural gas, the 4 rig decrease in West Virginia’s Marcellus, was completely offset by a 4 rig increase in Pennsylvania’s Marcellus, leaving the Marcellus rig count unchanged…meanwhile, the 3 rigs that were pulled out of Ohio included two natural gas rigs that had been operating in the Utica shale, and the “miscellaneous’ rig that had been drilling a shallow well in Sandusky county…in addition, a natural gas rig was shut down in the Cana Woodford of Oklahoma, where 2 new oil rigs started drilling at the same time, leaving the Cana Woodford with one natural gas rig and 45 drilling for oil…finally, the last natural gas rig that was shut down came out of a basin not tracked separately by Baker Hughes, which could have been anywhere, but which most likely seems to have been pulled out of Oklahoma, given an otherwise unexplained two rig decrease in the state outside of the Cana Woodford…

DUC well report for July

Monday of this past week saw the release of the EIA’s Drilling Productivity Report for August, which includes the EIA’s July data for drilled but uncompleted oil and gas wells in the 7 most productive shale regions…for the fifth month in a row, this report showed a decrease in uncompleted wells nationally in July, as drilling of new wells decreased and completions of drilled wells increased slightly….while there continued to be an increase of newly drilled but uncompleted wells (DUCs) in the Permian basin of western Texas and New Mexico, the other regions all saw decreases in their DUC inventory, more than offsetting the Permian increases…for the 7 sedimentary regions covered by this report, the total count of DUC wells decreased by 100 wells, the largest decrease in 33 months, from a revised 8,208 DUC wells in June to 8,108 DUC wells in July, which still represents a 14.0% increase from the 7,114 wells that had been drilled but remained uncompleted as of the end of July a year ago…the decrease occurred as 1,311 wells were drilled in the 7 regions that this report covers (representing 87% of all U.S. onshore drilling operations) during July, down by 31 from the 1,342 wells drilled in June and the lowest in 15 months, while 1,411 wells were completed and brought into production by fracking, an increase of 19 well completions from the 1,392 completions seen in June and a 54 month high for fracking…at the July completion rate, the 8,108 drilled but uncompleted wells left at the end of the month represent a 5.7 month backlog of wells that have been drilled but are not yet fracked, down from a 6.0 month backlog a year ago…  

both oil producing regions and natural gas producing regions saw DUC well decreases in July, with only the predominantly oil Permian showing an increase…the number of DUC wells left in the Oklahoma Anadarko decreased by 32, from 936 at ​the end of June to 904 DUC wells ​at ​the end of July, as 124 wells were drilled into the Anadarko basin during July while 156 Anadarko wells were being fracked….at the same time, the drilled but uncompleted well count in the Niobrara chalk of the Rockies’ front range decreased by 23 to 422, as 178 Niobrara wells were drilled in July while 201 Niobrara wells were completed….meanwhile, DUC wells in the Bakken of North Dakota fell by 18, from 693 DUC wells at ​the end of June to 675 DUCs at ​the end of July, as 106 wells were drilled into the Bakken in July, while 124 of the drilled wells in that basin were being fracked…in addtion, DUC wells in the Eagle Ford of south Texas decreased by 13, from 1,517 DUC wells at ​the end of June to 1,504 DUCs at ​the end of July, as 190 wells were drilled in the Eagle Ford during June, while 203 already drilled Eagle Ford wells were completed..

among the natural gas producing regions, the drilled but uncompleted well count in the Appalachian region, which includes the Utica shale, fell by 16 wells, from 438 DUCs at ​the end of June to 422 DUCs at ​the end of July, as 123 wells were drilled into the Marcellus and Utica shales during the month, while 139 of the already drilled wells in the region were fracked…in addition, the natural gas producing Haynesville shale of the northern Louisiana-Texas border region saw their uncompleted well inventory decrease by 7 wells to 182, as 46 wells were drilled into the Haynesville during July, while 53 Haynesville wells were fracked during the same period….

on the other hand, the Permian basin of west Texas and New Mexico saw its total count of uncompleted wells rise by 9, from 3,990 DUC wells at ​the end of June to 3,999 DUCs at ​the end of July, as 544 new wells were drilled into the Permian, but only 535 wells in the region were fracked…….thus, for the month of July, DUCs in the five oil basins tracked by in this report (ie., the Anadarko, Bakken, Niobrara, Permian, and Eagle Ford) decreased by a net of 77 wells to 7,504 wells, while the uncompleted well count in the natural gas basins (the Marcellus, Utica, and the Haynesville) decreased by 23 wells to 604 wells, although as the report notes, once into production, more than half the wells drilled nationally will produce both…

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