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Permian Oil Drilling is Becoming More Efficient: Macquarie

OIL

Though fewer rigs are drilling this year, there are sins of efficiency gains, Macquarie analysts said in a note April 26.

  • Macquarie sees a disconnect in the horizontal rig count “which is down meaningfully y/y, and other indicators in the oil patch that do not reflect the same softness.
  • “Oilfield labour activity remains elevated, and broadly speaking, we see recent completions-oriented commentary from service companies as also reflecting a degree of resilience.”
  • Macquarie said that efficiency is particularly strong in the Bakken and Midland areas of the Permian, Macquarie said.
  • Q1 rig count fell 19% on the year in Bakken, but spud fell just 3%. In the Midland, rig count fell by 11% and wells spud grew 3%.
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Though fewer rigs are drilling this year, there are sins of efficiency gains, Macquarie analysts said in a note April 26.

  • Macquarie sees a disconnect in the horizontal rig count “which is down meaningfully y/y, and other indicators in the oil patch that do not reflect the same softness.
  • “Oilfield labour activity remains elevated, and broadly speaking, we see recent completions-oriented commentary from service companies as also reflecting a degree of resilience.”
  • Macquarie said that efficiency is particularly strong in the Bakken and Midland areas of the Permian, Macquarie said.
  • Q1 rig count fell 19% on the year in Bakken, but spud fell just 3%. In the Midland, rig count fell by 11% and wells spud grew 3%.