Insight
Getting our DUCs in a row again: does the Permian backlog fly away?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The drilled but uncompleted (DUC) well count in the Permian has surged. After adding a record 800 new DUCs in 2018, there are now nearly 3,000 uncompleted tight oil wells in the Midland and Delaware basins. Is this the new norm because of larger pads, or just the result of last summer's aggressive rig build? Schlumberger recently commented that it expects shale producers to focus on DUCs instead of drilling new wells in 2019. We took a deep dive to show how inflection points in both price outlooks and producer behaviour are setting the stage for a meaningful change to the trajectory of the Permian DUC count. What could this mean for supply growth and why will DUCs be a focused area of spend?
Table of contents
- Why the unprecedented build?
- Pumping the brakes
- Price incentives matter
- The outlook for 2019 Permian DUCs
- DUCs matter, but production isn't guaranteed
Tables and charts
This report includes the following images and tables:
- Permian horizontal rig outlook
- Permian DUC count trends
What's included
This report contains:
