According to Core Labs (a very smart group) the United States' existing oil wells are now declining at 11% per year, which compares to the global average of 3.3%.
This is because horizontal wells in the shale plays come on strong and then go on steep decline. About half of U.S. production now comes from horizontal shale wells. The percentage will increase and so will the annual decline rate. This is great news for the onshore drilling companies and the frac sand companies.
U.S. Oil Wells decline much faster than Global average
U.S. Oil Wells decline much faster than Global average
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group