U.S. footage drilled per well continues to creep higher
In the country’s largest upstream state, Texas, footage drilled per well over all the districts has risen 1.3% between 2020 and 2024, as operators were already drilling longer laterals at the beginning of the period, Table 1. As the home of the prolific Permian basin, the state has seen its oil production jump 15.4%, from 4.849 MMbpd in 2020 to 5.595 MMbpd during first-half 2024, Table 2.
Within Texas, there are differences between the plays. For instance, in District 8 of the Permian basin, footage drilled per well has risen 1.8% over four years, from 16,800 ft in 2020 to an estimated 17,100 ft in 2024. And the district’s output has jumped 17.0%, from 2.831 MMbopd in 2020 to 3.313 MMbopd during first-half 2024. However, we should point out that District 8’s production this year is down about 104,000 bopd from its 2023 level, a phenomenon that we see in several states/areas. This may indicate that U.S. output is peaking and flattening out.
In Texas District 7C, also in the Permian, footage drilled per well has increased 6.9% over the last four years, going from 16,650 ft in 2020 to an estimated 17,800 ft in 2024. The district’s oil production has prospered accordingly, growing 19.7%, from 386,335 bpd in 2020 to 462,553 bpd in first-half 2024.
The story is different in the Eagle Ford shale portion of Texas. In District 1, footage drilled per well seems to be down about 8% from the 2020 level, at about 15,025 ft/well this year. And oil production in the district is level with the 2020 figure at 557,271 bpd. To the southeast, we find District 2 faring better, with average footage drilled per well rising to an estimated 16,350 ft, up 2.8% from 2020’s level. Yet, oil production in the district has fallen more than 13% since 2020, averaging about 447,370 bpd.
Over in neighboring New Mexico, gains in footage drilled per well and oil production have been impressive. The footage drilled per well has jumped 24% higher, from 15,000 ft in 2020 to 18,600 ft in the first half of 2024. The state’s oil production certainly has responded to the longer wells. Output is up an impressive 93%, from 1.027 MMbopd in 2020 to 1.981 MMbopd in first-half 2024.
In the Gulf of Mexico, footage drilled per well is up about 9%, rising from 17,200 ft in 2020 to about 18,720 ft in first-half 2024. Interestingly, GOM oil production is up proportionately during this period, gaining 7.5% to 1.792 MMbpd in first-half 2024. Milder results have occurred in North Dakota, where footage drilled per well is up 3.5% during the last four years, averaging 21,667 ft during the first six months of 2024. And oil output has barely budged, with a rate of 1.193 MMbpd during the first half of this year. While Oklahoma’s footage drilled per well is up 5.4% during the last four years, the state’s oil production has not reacted in tandem. Instead, oil output has fallen 16.1%, from 472,000 bpd in 2020 to about 396,000 bpd in the first half of 2024.
Other noticeable gains in footage drilled per well have occurred in Wyoming, Utah and Ohio, with encouraging increases in oil production registered, accordingly.
To assess Pennsylvania and Louisiana (the northern half) fairly, we have to look at drilling footage vs. the performance of natural gas production in those states. In Pennsylvania, footage drilled per well has remained relatively flat during the period. The figure has risen from about 15,960 ft in 2020 to 16,100 ft in first-half 2024. Accordingly, gas production in the state was up a marginal 3.3% in that same timeframe, Table 3. These figures may represent the ongoing difficulties that the industry has been having in trying to build additional pipeline capacity to transport gas out of the state for either export or routing within the U.S.
Down in Louisiana, the footage drilled per well is virtually unchanged from four years ago. Yet, marketed gas production in the state is up about 18%. Some of this increase may be due to a number of LNG projects underway or planned in the state. An additional factor may turn out to be the state’s Mineral and Energy Board’s authorization of the 2024 Royalty Reduction Program.
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