U.S. Oil Production
Posted: Tue Mar 22, 2016 1:52 pm
Read this and you will understand why the rapidly falling active rig count will have a big impact on U.S. oil production.
https://web.mail.comcast.net/zimbra/mail?app=mail#6
Horizontal wells drilled into tight formations tend to have very high initial production rates, but they also have steep initial decline rates. With steep decline rates, constant drilling and development of new wells is necessary to maintain or increase production levels. Rig counts and the productivity of newly drilled wells, which are tracked in EIA's Drilling Productivity Report, are two key indicators of future oil production.
https://web.mail.comcast.net/zimbra/mail?app=mail#6
Horizontal wells drilled into tight formations tend to have very high initial production rates, but they also have steep initial decline rates. With steep decline rates, constant drilling and development of new wells is necessary to maintain or increase production levels. Rig counts and the productivity of newly drilled wells, which are tracked in EIA's Drilling Productivity Report, are two key indicators of future oil production.