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Lynn Helms - Director's Cut

Mar 17, 2020

Lynn HelmsOil Production
December 45,780,075 barrels = 1,476,777 barrels/day 
January 44,314,959 barrels = 1,429,515 barrels/day 

Gas Production
December Production 94,903,770 MCF = 3.061 BCF/day
January Production 93,441,892 MCF = 3.014 BCF/day 
The drilling rig count was stable in the mid 60’s for the first half of 2019. Based on oil price, capital availability, and gas capture operators implemented plans to reduce rigs to the mid 50’s second half of 2019. Industry projects substantial reduction in rig count over the next 3 months.

The statewide gas flared volume from December to January decreased 37,348 MCF/day to 466,619 MCF per day and percent flared decreased to 15% with a Bakken capture percentage of 85%.

The number of well completions has begun to fall due to oil price, weather, and gas capture. Lower crude oil price, gas capture, and competition for capital continue to put downward pressure on rig count. Utilization rate for rigs capable of 20,000+ feet is 40-60% and for shallow well rigs (7,000 feet or less) 25-35%.

Drilling permit activity has slowed down due oil price and gas capture. Operators continue to maintain a permit inventory of approximately 12 months.

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