Commodities Buzz: Decline In Drilled But Uncompleted Wells May Limit Future Crude Oil Production Growth Says EIA

27 Oct 2022 , 11:42 AM

The US EIA noted yesterday that according to its Drilling Productivity Report (DPR), more wells were completed than were drilled in the United States from July 2020 through September 2022 (the latest month for which data are available). As a result, the number of drilled but uncompleted wells (DUCs) in the United States fell to 4,333 as of September 2022, the fewest since at least December 2013, when EIA started estimating the number of DUCs. Fewer DUCs, along with natural gas pipeline constraints, could limit future U.S. crude oil production growth. The two main stages in bringing a horizontally drilled, hydraulically fractured well online are drilling and completion. The drilling phase involves dispatching a drilling rig and crew, who then drill one or more wells on a pad site. A separate crew typically performs the completion phase by casing, cementing, perforating, and hydraulically fracturing the well so it can begin production. In general, the time between the drilling and completion stages is several months.Powered by Commodity Insights