Rystad Energy expects US unconventional oil well completions to outpace drilling activity during the second half, resulting in 800 fewer drilled but uncompleted (DUC) horizontal wells.
These completions are expected to provide an additional 300,000-350,000 b/d by Dec. 31. The additional output will be more than sufficient to balance the base production decline, Rystad Energy said.
The existing inventory of 4,000 DUCs is estimated to hold close to 2 billion bbl of oil reserves.
“Research shows that operators are now starting to complete wells that have previously been put on hold deliberately,” said Artem Abramov, Rystad Energy senior analyst and product manager. “This comes as more than 90% of the accumulated oil DUC inventory can be commercially completed at a [West Texas Intermediate price] of $50/bbl.”
