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US Fracturing To Face Worst Declines Ever

The oil market is likely facing the largest monthly drop in fracturing activity ever recorded in the US, according to Rystad Energy analysis.

Assuming no new horizontal wells are put in production from April 2020 onward, total light tight-oil production will decline by 2 million B/D by July and by 3 million B/D by October to November; the Permian Basin will account for more than half of the nationwide base decline.

Started fracturing jobs in three major US basins declined by 30% in March to fall below 300 wells in April; there were close to 200 wells started in the Permian and less than 50 each in the Bakken and Eagle Ford basins.

This drop translates to a 60% decline in started fracturing operations between the peak level seen in January to February and April 2020.

“The natural base production decline, which we have seen as an absolute floor for production, therefore becomes an increasingly relevant production scenario,” Rystad Energy Head of Shale Research Artem Abramov said.

“The decline in started jobs which began in March will result in a lower number of wells put on production in May, which ultimately will lead to a drop in peak production in June if normal operational patterns are maintained.”

US Fracturing To Face Worst Declines Ever

01 June 2020

Volume: 72 | Issue: 6

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