By Natalia Kniazhevich, Bloomberg Markets Live analyst and reporter
As oil prices have climbed to around $110 a barrel, US producers have been restarting projects that had stalled.
They’re starting to run low on these extra wells, which could limit future domestic production.
The number of drilled but not completed oil wells -- also known as DUCs -- has been shrinking for almost two years, and is now at its lowest level since the series started at the end of 2013.
The oil production process involves, at a high level, two separate steps: drilling and fracking. When a company drills a well it can leave it uncompleted, which happens when oil prices are low. That’s exactly what we saw during the early part of the pandemic.
When prices, like now, are soaring, companies complete wells and begin to extract crude. But with a limited number of DUCs left, drilling more oil in the US will involve tapping more new wells, a harder process for companies facing pressure to meet ESG targets and maintain capital discipline.
#1: Esso To: Horse (#0)
Shoot High - Aim Low
Esso posted on 2022-07-01 19:32:52 Reply Private Reply
#2: Esso To: All (#1)
No LGBTQAIP+ nonsense there...
Esso posted on 2022-07-01 19:37:58 Reply Private Reply
#3: BTP Holdings To: Horse (#0)
I heard that in west Texas the oil boom is so strong that if you do not get into the restaurant by 0900 you cannot get breakfast. They get a shipment of food every day. ;)
BTP Holdings posted on 2022-07-01 19:45:42 Reply Private Reply
#4: Esso To: BTP Holdings (#3)
Esso posted on 2022-07-01 19:48:27 Reply Private Reply
#5: Ricky To: BTP Holdings (#3)
Let's Go BRANDON!!! Yes, and I read on this site today: BRANDON proposed regulations that will directly affect the Permian Basin, the largest oil field in the United States, accounting for 95,000,000 gallons of gasoline per day or 40% of the oil produced domestically.
Quoting Obongo, you Can Count on BRANDON to FUKITUP!
I believe that's a TRUE statement.
Ricky posted on 2022-07-02 01:41:16 Reply Private Reply