Early permitting trends in unconventional plays—which account for roughly 80% of all active rigs—point to continuing struggles in the number of new wells spudded in 2016, according to RigData’s RADAR Report.
Unconventional permits dropped by nearly half YOY in first half 2015. But even with the drastic budget cuts last year, permits fell by only -12% from 1H 2015 to 2H 2015. Both oil and gas shale categories slashed well counts YOY by -41% in 2015.
Tight oil sands permits and well counts fell YOY in 2015 by -41% and -36%, respectively. Tight gas sands permits and well counts each fell by -57% in 2015. Other oil/liquids plays shed permits by -61% and new spuds by -55% last year. While unconventional play permits doubled in mid-January, that was just the usual post-holiday recovery, according to the RigData News & Analysis team, writing in the RADAR Report.
If the latest numbers are an indication, permits could fall by a further one-third in 2016, testing the 500 rig count floor as a psychological milestone, the RDNA team concluded.
Stay on top of all drilling and permitting activity in your area! Every week, RADAR analyzes the active land operators and drillers highlighting the trends and key activities at the major shale and unconventional formations. And with segmenting data by play and geographical region, RADAR highlights the key players as they develop major upstream markets for hydrocarbons. Plus, you’ll get the details on operators, rigs, drilling efficiencies and development patterns.
Posted by RigData.