Overall drilling in U.S. shale basins has increased 38% from a year ago, according to a report by NGI’s Shale Daily.
This increase has been spurred by 100-200% jumps in oil and liquids rich natural gas plays such as the Niobrara in Colorado and southern Wyoming (200%), the Eagle Ford in South Texas (126%) and the Bakken in North Dakota and Montana (105%). U.S. Shale and tights sands rigs at work overall increased to 942 rigs compared to 684 a year ago.
The massive move into the oil/liquids plays reflects the response to the wide spread between the higher oil and bottom-dwelling natural gas prices over the past year.
During the same year ending Jan. 7, 2011 drilling in the Marcellus shale basin in the Appalachian area increased 47%, while the Piceance in western Colorado and Uinta in eastern Utah tight sands plays also showed robust drilling increases of 42% and 33% respectively. The Granite Wash in western Oklahoma and Texas registered an 89% drilling increase over the past year, also reflecting a high liquids content, while the Cana-Woodford, in central Oklahoma, had a drilling increase of 36%. Another popular Texas shale play, Barnett, picked up a 7% gain in rig activity.
On the Decline
On the opposite side is the 8% decline in Louisiana's Haynesville drilling, the 19% drop in the Arkoma-Woodford in Oklahoma and the 18% decline in the tight sands Green River Basin in Wyoming during the same period. Arkansas’ Fayetteville shale also saw a decline in activity, posting a drilling decline of 6%.
Recommended Reading
Rising Phoenix Royalties Adds Permian Basin Mineral Interests
2024-08-29 - The acquisition of Permian Basin interests in Dawson County, Texas, follows a July deal by Rising Phoenix Royalties for a non-operated working interests in the Denver-Julesburg (D-J) Basin.
Shell Sells Pipeline, Terminal Assets to Edgewater Midstream
2024-08-29 - Shell is selling its Sinco pipeline system and Colex terminal assets that have been historically integrated with the Deer Park Refinery, which Shell sold to Pemex in 2022.
ONEOK Secures Traffic for Growing Midstream Network with $5.9B Deal
2024-08-29 - ONEOK’s latest deals to acquire controlling interest in midstream companies EnLink and Medallion are considered “neutral” for the company’s credit rating.
Marathon Stockholders Give $17.1B ConocoPhillips Merger Thumbs Up
2024-08-29 - Marathon Oil shareholders approved a merger acquisition by ConocoPhillips valued at $22.5 billion, including debt, at a special meeting.
Why Buying Double Eagle Does (and Doesn’t) Make Sense for Ovintiv
2024-08-29 - Proceeds from an Ovintiv divestiture in the Uinta Basin could help fund a deal for Double Eagle’s Midland Basin assets, but analysts say the money could just as easily be used for debt reduction.