Drillers looking at 800 dormant wells as market improves for oil
...This is more evidence of the failure of the OPEC strategy, and the innovation of US producers who prepared wells for completion as soon as the market recovered. Many of these wells are in the shale plays in Texas.
The shale industry could bring some 800 dormant wells into production by the end of the year, producing enough crude to stabilize the nation’s falling production by the end of the year, according to Norwegian consultancy Rystad Energy.
Twenty drilling rigs have already been hoisted back up over U.S. oil fields, and the fleet will probably keep growing. But over the next six months, so-called completion activity could outpace drilling by 30 percent. The term completions is industry shorthand for processes that get a well ready to pump oil, like pouring cement down a well’s gullet.
Tapping into those 800 wells could boost U.S. crude production by as much as 350,000 barrels a day by the end of the year. Rystad said more than 90 percent of the backlog of 4,000 untapped wells would be profitable with crude prices around $50 a barrel.