RE:RE:RE:understanding rig count?Johnny41 wrote: Im wondering if there are just a butt load of capped off wells that everyone was drilling 2012 to 2015 which they are now just taking production from... Can they cap the wells and then get production from them in situations like this when they cannot afford to drill? Its like using up all your inventory. With how the wells decline, I would expect if this is the case we should see all of a sudden production dropping substantially, but I guess its all dependant on how many wells were just capped off for future use towards production. Thoughts on this? Are there any actual numbers available that companies show inventoried wells?
There is definitely the "fraclog" still left to work through. One point though is that while the drilling is done for this wells, they still cost millions a piece to actually do the simulation, fracturing and completion work. It's not cheap to get those running, so many will still be left alone, especially in the more complex formations where at these prices you still don't come close to breaking even on the wells even ignoring the cost to do the drilling. For many producers, it's probably better to leave these wells alone and they are more valuable to have on paper as part of an asset sale.
One of the latest numbers I've seen about the fraclog is ~3k drilled wells left to complete.