DUC's
Posted: Tue Nov 24, 2015 9:23 pm
Drilled but Uncompleted Wells or "DUCs" is an issue I get asked about a lot.
In my opinion, it is just another concern that is way over-blown. At most there are 5,000 DUCs and no matter what the oil & gas prices do, they will not all be completed at once.
Read this:
http://www.oilandgas360.com/ducs-in-a-r ... dium=email
The companies that have a lot of DUCs will just complete them before they drill new wells. They are holding off completions as long as they can in the hope that oil prices will improve. Plus, it now costs more to complete a horizontal well than it costs to drill them.
I have discussed this with Hi-Crush Partners. They see it as a potential "kick start" for frac sand demand in 2016.
Regardless, we will not see a rush to complete all of the DUC's unless there is a big spike in oil prices.
In my opinion, it is just another concern that is way over-blown. At most there are 5,000 DUCs and no matter what the oil & gas prices do, they will not all be completed at once.
Read this:
http://www.oilandgas360.com/ducs-in-a-r ... dium=email
The companies that have a lot of DUCs will just complete them before they drill new wells. They are holding off completions as long as they can in the hope that oil prices will improve. Plus, it now costs more to complete a horizontal well than it costs to drill them.
I have discussed this with Hi-Crush Partners. They see it as a potential "kick start" for frac sand demand in 2016.
Regardless, we will not see a rush to complete all of the DUC's unless there is a big spike in oil prices.