Energy Department To Start Reporting Decline Rates of Wells
WASHINGTON — The Energy Department is poised to shed more light on today’s oil and gas drilling boom, with a closer look at the longevity of new wells that are tapping dense rock formations across the U.S.
In a new monthly report debuting on Tuesday, the department’s Energy Information Administration will provide data on the productivity of new wells, the decline rates of old ones and overall production in six drilling hotbeds.
The report comes amid scrutiny of the steep production declines associated with the hydraulically fractured wells — particularly in the Bakken formation spanning Montana and North Dakota — and continued concerns about the lifespan of the projects. Critics note that companies must keep drilling new wells — and continuously pick up the pace — to replace the big production drop-offs.
The report also responds to a growing hunger for data that goes beyond traditional metrics to give a more complete picture of unconventional tight oil and gas development.
In a preview of the new report, the EIA said its “metrics are intended to be more informative than traditional indicators such as simple counts of oil-directed and gas-directed drilling rigs in use.” The EIA added:
“The drilling production report synthesizes several different types of information to shed light on the current rate of growth or decline in production based on indicators including the active rig count, drilling efficiency and the productivity of new wells, and production and depletion trends for previously producing wells.”
The EIA had not foreshadowed this new report before, but the agency cast it as part of its work to create “new approaches to assess the productivity of drilling operations . . . given the importance of drilling productivity trends as a driver for future domestic production.”
Numbers in the monthly report will be incorporated in the EIA’s short-term production outlooks.
particularly in the Bakken formation spanning Montana and North Dakota — and continued concerns about the lifespan of the projects. Critics note that companies must keep drilling new wells — and continuously pick up the pace — to replace the big production drop-offs.
Why is it the government business what 'critics' claim? They do not have to invest. Used to be the American economy. When our economy actually grew normally.
it looks like within about 2 months KOG will be producing more than BRY...
" KOG exit rate for 2013 sales volumes of approximately 42,000 BOE/d."
If you have not yet read this SA article you would find it interesting:
"Every Investor Should Own Shale Oil Stocks
Oct 21 2013, 07:30 "
The SA article starts like this:
"On Tuesday 24 September 2013, Goldman Sachs published upbeat comments about drilling activity in the Bakken. Amongst other things, they said:
"We came away from our trip to North Dakota last week with greater confidence in our outlook that Bakken production/completion activity will likely exceed Street expectations....during our trip producers were uniformly confident in resource expansion, efficiency gains and potential for improving well performance in the coming years.... production can continue to grow substantially."