U.S. OIL GAS PRODUCTION UP
The monthly DPR tracks the total number of active drilling rigs, drilling productivity, and estimated changes in production from existing oil and natural gas wells in the Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara, Permian, and Utica. The seven regions accounted for 92% of domestic oil production growth and all domestic gas production growth during 2011-14.
The regions' production rebound has been gaining steam each month this year, led by an industrywide focus on the Permian basin, where oil output is expected to increase 76,000 b/d month-over-month in May to 2.362 million b/d. The neighboring Eagle Ford, the site of a more recent resurgence, is forecast to rise 39,000 b/d to 1.216 million b/d.
Baker Hughes Inc.'s most recent data indicate the Permian has added 205 rigs since May 13, 2016, and now totals 339. The Eagle Ford has added 44 units since Oct. 14, 2016, and now totals 75. Drilled but uncompleted (DUC) wells have multiplied in the two regions. The Permian gained 90 DUC wells month-over-month in January and now totals 1,864, while the Eagle Ford rose by 26 during the month and now has 1,285.
The Niobrara is projected to climb 8,000 b/d during May to 456,000 b/d, continuing a steady-but-shrinking increase. Its DUC well count dropped by 15 month-over-month in January to 623. The Bakken's slide is expected to shrink to 1,000 b/d, bringing the region's output to 1.023 million b/d. Its DUC well count rose by 4 in January to 809.
Gas production from the seven regions is forecast to gain 501 MMcfd month-over-month in May to 50.089 bcfd. The Permian is expected to rise 159 MMcfd to 8.135 bcfd, while the Eagle Ford is projected to increase 84 MMcfd to 5.936 bcfd.
The Haynesville, which also partially encompasses Texas, is expected to jump 138 MMcfd in May to 6.375 bcfd. Its DUC well count increased by 13 in January to 182.
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NPD - Preliminary production figures for July 2018 show an average daily production of 1 911 000 barrels of oil, NGL and condensate, which is an increase of 64 000 barrels per day compared to June.
GAZPROM NEFT - For the first six months of 2018 Gazprom Neft achieved revenue** growth of 24.4% year-on-year, at one trillion, 137.7 billion rubles (RUB1,137,700,000,000). The Company achieved a 49.8% year-on-year increase in adjusted EBITDA, to RUB368.2 billion. This performance reflected positive market conditions for oil and oil products, production growth at the Company’s new projects, and effective management initiatives. Net profit attributable to Gazprom Neft PJSC shareholders grew 49.6% year on year, to RUB166.4 billion. Growth in the Company’s operating cash flow, as well as the completion of key infrastructure investments at new upstream projects, delivered positive free cash flow of RUB47.5 billion for 1H 2018.
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