 |
Louisiana Light • 3 days | 84.39 | +0.14 | +0.17% | ||
|
Bonny Light • 2 days | 84.45 | -0.41 | -0.48% | ||
|
Opec Basket • 3 days | 84.23 | -2.94 | -3.37% | ||
|
Mars US • 184 days | 77.26 | -1.51 | -1.92% | ||
|
Gasoline • 2 days | 2.555 | -0.041 | -1.59% |
|
Bonny Light • 2 days | 84.45 | -0.41 | -0.48% | ||
|
Girassol • 2 days | 85.44 | -0.34 | -0.40% | ||
|
Opec Basket • 3 days | 84.23 | -2.94 | -3.37% |
|
Peace Sour • 2 days | 72.15 | -0.05 | -0.07% | ||
|
Light Sour Blend • 2 days | 75.20 | -0.05 | -0.07% | ||
|
Syncrude Sweet Premium • 2 days | 82.15 | -0.05 | -0.06% | ||
|
Central Alberta • 2 days | 72.55 | -0.05 | -0.07% |
|
Eagle Ford • 3 days | 75.43 | -0.05 | -0.07% | ||
|
Oklahoma Sweet • 3 days | 75.50 | +0.00 | +0.00% | ||
|
Kansas Common • 5 days | 72.25 | -0.75 | -1.03% | ||
|
Buena Vista • 6 days | 87.60 | -1.22 | -1.37% |
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Colorado Home to Best-Value Frac Wells
The Denver-Julesburg basin in Colorado hosts the most commercial, or low-cost, fraclog in the United States, according to a study by Rystad Energy.
The costs per barrel of oil extracted after the wells are fracked equal US$4.70 and the basin holds almost 600 unfracked wells that await crews to complete the process.
A large number of incomplete wells have piled up due to delays by Anadarko Petroleum - the Texas-based company that operates half of Weld County’s fraclog. Three other companies--PDC Energy, Noble Energy and Whiting Petroleum--each preside over 10 percent of the uncompleted wells.
Related: Is America’s Vision for Renewal Energy a Mirage?
Rystad’s report says the drilled but uncompleted (DUC) wells become economical when the West Texas Intermediate (WTI) barrel price reaches just $30 a barrel. NASDAQ says WTI traded at $49.54 on Friday.
Reeves County in the Permian Delaware ($4.80 in costs per barrel) and McKenzie County in the Bakken ($5.10 in costs per barrel) also exhibited favorable economics.
Related: Why $50 Oil Is Here To Stay
The study implies that a major part of the US’ DUC inventory is profitable even as prices are low and recover only slowly.
The Wall Street Daily reported when oil solidly hits $50 dollars a barrel – which it briefly did earlier this week – a portion of 4,000 fraclogged wells could go online in a matter of months.
On average, it takes around 80 days to bring a fraclogged well back into production, according to Bloomberg. If 170 wells a month began producing oil, a fresh supply of 500,000 barrels a day would enter international markets – potentially causing another price drop.
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By Zainab Calcuttawala for Oilprice.com
More Top Reads From Oilprice.com:
- Why Chevron Is Investing $37B In The World’s ‘’Most Difficult Oil’’
- U.S. Oil Rig Count Declining Again After Single-Week Reprieve
- Oil On Firm Footing at $50?
Zainab Calcuttawala
Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…
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Nice hat.