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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: rdkflorida2 who wrote (13294)	3/12/2022 8:30:33 PM
From: robert b furman	Read Replies (2) \| Respond to of 26838

RD, When Biden became president there existed a large and substantial in historical numbers backlog of DUCS - drilled but uncompleted wells. They were drilled but not connected. The usual inventory of DUCS was inordinately high before Covid hit. The drilling was the big ticker item and connecting them was less expensive buy took longer to accomplish. The level of DUCS has now been worked down by about 75% from its peak before Covid hit in 2000. Those newly connected DUCS are how more production could be maintained and even added at the least cost. f.hubspotusercontent40.net Click on this pdf link and and then scroll down to page 14 and read US PRODUCTION. This will give you excellent insight as to hoe wehave kept oil production but we have also whittled down out inventory of DUCS. Ducs ar an important aspect of how in an emergency the US can boost it production. If you want to toatlly understand how critcal it is for Biden to reverse his negative stance on oil and gas production read about the global and in particular the Y four US majors and how their proven reserves are in decline due to ESG interests that are starving the oil E&P's from capital to ensure our oil supplies and security. It is a scary read that will make you want invest in E&P's. Our use of oil will be needed much longer than all the hype of environmentalists and their refusal to acknowledge the fossil fuel is what has enabled our quality of life.At this point in time, every alternative is vastly more expensive. To derail inexpensive crude supplies will impact millions as the become energy impoverished. It is a story of great detail that needs to be told and understood by many more good folks! Here are some facts on DUCS before Covid demand collapse: TODAY IN ENERGY GLOSSARY › FAQS › HOME BROWSE BY TAG PRICES ARCHIVE ABOUT MAY 3, 2019 The number of drilled but uncompleted wells in the United States continues to climb Source: U.S. Energy Information Administration, Drilling Productivity Report The number of drilled but uncompleted wells in seven key oil and natural gas production regions in the United States has increased over the last two years, reaching a high of 8,504 wells in February 2019, according to well counts in EIA’s Drilling Productivity Report (DPR). The most recent count, at 8,500 wells in March 2019, was 26% higher than the previous March. Drilled but uncompleted wells, also known as DUCs, are oil and natural gas wells that have been drilled but have not yet undergone well completion activities to start producing hydrocarbons. The well completion process involves casing, cementing, perforating, hydraulic fracturing, and other procedures required to produce crude oil or natural gas. The number of DUCs has generally increased since the end of 2016. A high inventory of DUCs may be attributable to economic factors or resource constraints. For example, a low oil and natural gas price environment may postpone well completion activities in areas where the wellhead break-even price is too high relative to the current market price. Another example may be the lack of available well completion crews to perform hydraulic fracture activities in areas of high demand. Takeaway capacity, or the ability to transport hydrocarbons through pipelines away from the resource, may also place additional constraints when pipeline networks are insufficient to accommodate supply. Source: U.S. Energy Information Administration, Drilling Productivity Report Most of the recent increase in the DUC count has been in regions dominated by oil production, especially the Permian region that spans western Texas and eastern New Mexico. As of March 2019, nearly half of the total DUCs included in the DPR were in the Permian region. The Permian Basin experienced takeaway constraints in the second half of 2018, but recent pipeline capacity additions in the region have reduced some of the takeaway constraints. Other pipeline projects are planned or currently under construction. In contrast to oil-directed regions, the number of DUCs in natural gas-dominated DPR regions such as the Appalachian and Haynesville regions has decreased by nearly half over the past three years, from 1,230 wells in March 2016 to 713 wells in March 2019. New pipelines in these regions have increased the ability to transport natural gas to demand centers in the Northeast and Midwest. Source: U.S. Energy Information Administration, Drilling Productivity Report Production in the seven DPR regions, which are characterized by tight oil or shale gas formations, totaled 8.2 million barrels per day of crude oil and 77.1 billion cubic feet per day of natural gas in February 2019, or 70% of total U.S. crude oil production and 71% of total U.S. natural gas production. EIA’s estimates of DUC counts may differ from other sources because of differences in methodology and assumptions. EIA develops its estimates of DUC counts using a consistent methodology and uniform assumptions across regions. More information on drilling and production metrics is available in EIA’s Drilling Productivity Report, and more comprehensive information on total oil and natural gas production is available in EIA’s Monthly Crude Oil and Natural Gas Production Report. The DUCS have now been completed and a shortage of quick supply via DUCS completion is greatly diminished! Bob