It is Monday again and while thinking what exactly to share with our readers, I decided to build up on our previous topic ie forecasts vs field – what exactly is happening in U.S. oil industry and more specifically with U.S. oil production. Frac spreads are falling, but U.S. oil production is holding up. That might sound like a contradiction, but the data tells a more interesting story. Even as fewer frac fleets are working, completions remain steady, crews are staying busy, and overall output—especially from the Permian—is actually ticking higher. What’s behind this disconnect? Operators are getting more out of fewer resources, thanks to better efficiency and a steady drawdown of their DUC (drilled but uncompleted) inventory. The real question is: how long can this last?
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