The number of oil and gas wells in Texas readied for production fell nearly 12% in the first seven months of 2019 compared with the same time last, according to data from the state energy regulator, as activity dropped on concerns of slowing demand and oversupply.
Producers completed 5,749 wells in Texas from January to July versus 6,514 in the same period last year, the Railroad Commission of Texas said on Aug. 16. Completion means the wells are ready to start producing.
Permits to drill new wells in the largest U.S. oil-producing state also declined this year, falling by about 14% to 7,166 in the first seven months of the year from 8,330 last year.
The declines have hurt companies that provide hydraulic fracturing and other services to energy producers. Many pressure pumping firms raced to build or acquire new equipment in recent years on hopes that producers would begin working through a build-up of drilled-but-uncompleted (DUC) wells.
Shares of pressure pumper Liberty Oilfield Services this week fell to a record low of $10.96, less than half its peak of $23.90 in May 2018. Rival ProPetro traded down to $10.91 this week, near a record low and 57% below its peak in April 2019.
Across the United States, the total number of DUCs is anticipated to have fallen by about 100 in July to 8,108, according to estimates from the U.S. Energy Information Administration (EIA). The only major U.S. shale field still adding to its DUC backlog is the Permian Basin, which stretches across West Texas and eastern New Mexico.
In the Permian, the number of DUCs is expected to rise by 9 in July to 3,999, the EIA said in its latest Drilling Productivity Report.
Recommended Reading
Production Begins at Shell’s GoM Whale Facility
2025-01-09 - Shell’s Whale floating production facility in the Gulf of Mexico has reached first oil less than eight years after the field’s discovery of 480 MMboe of estimated recoverable resources.
What Chevron’s Anchor Breakthrough Means for the GoM’s Future
2024-12-04 - WoodMac weighs in on the Gulf of Mexico Anchor project’s 20k production outlook made possible by Chevron’s ‘breakthrough’ technology.
E&P Highlights: Dec. 30, 2024
2024-12-30 - Here’s a roundup of the latest E&P headlines, including a substantial decline in methane emissions from the Permian Basin and progress toward a final investment decision on Energy Transfer’s Lake Charles LNG project.
QatarEnergy Joins Joint Venture Offshore Namibia
2024-12-17 - QatarEnergy acquired a 27.5% stake in petroleum exploration license 90 offshore Namibia.
US Oil, Gas Rig Count Unchanged this Week
2024-11-01 - The oil and gas rig count held at 585 to Nov. 1. Baker Hughes said that puts the total rig count down 33 rigs, or 5% below this time last year.