Drilling Productivity Report - EIA

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Independent Statistics & Analysis

U.S. Energy Information Administration

November 2017

Drilling Productivity Report For key tight oil and shale gas regions

Contents Year-over-year summary Anadarko Region Appalachia Region Bakken Region Eagle Ford Region Haynesville Region Niobrara Region Permian Region Explanatory notes Sources

2 3 4 5 6 7 8 9 10 11

Year-over-year summary

November 2017 drilling data through October projected production through December

Drilling Productivity Report New-well oil production per rig

New-well gas production per rig

barrels/day

thousand cubic feet/day December-2016

December-2017

December-2016

3,000

18,000

2,500

15,000

2,000

12,000

1,500

9,000

1,000

6,000

500

3,000

December-2017

0

0 Anadarko

Appalachia

Bakken

Eagle Ford Haynesville

Niobrara

Legacy oil production change

Appalachia

Bakken

Eagle Ford Haynesville

Niobrara

Permian

Legacy gas production change

thousand barrels/day Anadarko

Anadarko

Permian

million cubic feet/day

Appalachia

Bakken

Eagle Ford Haynesville

Niobrara

Permian

0

Anadarko

Appalachia

Bakken

Eagle Ford Haynesville

Niobrara

Permian

0 (100)

(30)

(200)

(60)

(300) (400)

(90)

(500)

(120)

(600) (150) December-2016

(700)

December-2017

December-2016

December-2017

(800)

(180)

Indicated monthly change in oil production (Dec vs. Nov)

Indicated monthly change in gas production (Dec vs. Nov)

thousand barrels/day

million cubic feet/day December-2016

December-2017

December-2016

80

500

60

400

40

300

20

December-2017

200

0

100

-20

0

-40

-100

-60

-200

-80

-300

-100 Anadarko

Appalachia

Bakken

Eagle Ford Haynesville

Niobrara

Appalachia

Bakken

Eagle Ford Haynesville

Niobrara

Permian

Natural gas production

Oil production

million cubic feet/day

thousand barrels/day

December-2016

5,000

Anadarko

Permian

December-2016

December-2017

December-2017

30,000

4,000

24,000

3,000

18,000

2,000

12,000

1,000

6,000

0

0 Anadarko

Appalachia

Bakken

Eagle Ford Haynesville

Niobrara

Permian

U. S. Energy Information Administration | Drilling Productivity Report

Anadarko Appalachia

Bakken

Eagle Ford Haynesville

Niobrara

Permian

2

Anadarko Region

November 2017 drilling data through October projected production through December

Drilling Productivity Report

382 377

Oil +5 barrels/day month over month

Monthly additions from one average rig

December November

barrels/day

Anadarko Region New-well oil production per rig barrels/day 800

Rig count rigs

new-well oil production per rig

300

rig count

700

2,539 2,530

December November

Gas +9 thousand cubic feet/day month over month

thousand cubic feet/day

Anadarko Region New-well gas production per rig

Rig count rigs new-well gas production per rig 300 rig count

thousand cubic feet/day 4,800

250

4,000

250

200

3,200

200

150

2,400

150

100

1,600

100

600 500 400 300

200 50

100 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0

800

50

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Anadarko Region Legacy oil production change

Anadarko Region Legacy gas production change

thousand barrels/day 0

million cubic feet/day 0

0

(50)

(10)

(100) (20)

(150)

(200)

(30)

(250) (40)

(300)

(50) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(350) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Anadarko Region Indicated change in oil production (Dec vs. Nov)

Anadarko Region Indicated change in natural gas production (Dec vs. Nov)

thousand barrels/day

million cubic feet/day

50

+46

-40

+6

400

40

+308

-295

+13

300

30

200

20

100

10 0

0 Nov 474 Mbbl/d

Production from new wells

Legacy production change

Anadarko Region Oil production

Net change

Dec 480 Mbbl/d

Oil +6 thousand barrels/day month over month

thousand barrels/day

Nov 6,083 MMcf/d

Production from new wells

Anadarko Region Natural gas production million cubic feet/day

1,000

6,000

800

5,000

Legacy production change

Net change

Dec 6,096 MMcf/d

Gas +13 million cubic feet/day month over month

4,000

600

3,000 400

2,000

200

0 2008

1,000

2009

2010

2011

2012

2013

2014

2015

2016

U. S. Energy Information Administration | Drilling Productivity Report

2017

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 3

Appalachia Region

November 2017 drilling data through October projected production through December

Drilling Productivity Report

135 135

Oil 0 barrels/day month over month

November

barrels/day

Appalachia Region New-well oil production per rig barrels/day 3,000 2,500

Monthly additions from one average rig

December

Rig count rigs

new-well oil production per rig

180

rig count

December November

14,369 14,342

Gas +27 thousand cubic feet/day month over month

thousand cubic feet/day

Appalachia Region New-well gas production per rig

Rig count rigs

thousand cubic feet/day

18,000

new-well gas production per rig

180

rig count

150

15,000

2,000

120

12,000

120

1,500

90

9,000

90

1,000

60

6,000

60

500

30

3,000

30

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0

150

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Appalachia Region Legacy oil production change

Appalachia Region Legacy gas production change

thousand barrels/day 0

million cubic feet/day 0

(2)

(150)

(4)

(300)

(6)

(450)

(8)

(600)

(10) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(750) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Appalachia Region Indicated change in oil production (Dec vs. Nov)

Appalachia Region Indicated change in natural gas production (Dec vs. Nov)

thousand barrels/day

million cubic feet/day

15.0

+10

-7

+3

0

1,200

+1081

-687

+394

900

10.0

600 5.0

300

0.0

0 Nov 108 Mbbl/d

Appalachia Region Oil production thousand barrels/day

Production from new wells

Legacy production change

Net change

Dec 111 Mbbl/d

Oil +3 thousand barrels/day month over month

Nov 25,672 MMcf/d

Appalachia Region Natural gas production million cubic feet/day

5,000

30,000

4,000

25,000

3,000

Production from new wells

Legacy production change

Net change

Dec 26,066 MMcf/d

Gas +394 million cubic feet/day month over month

20,000 15,000

2,000 1,000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 U. S. Energy Information Administration | Drilling Productivity Report

10,000

5,000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 4

Bakken Region

November 2017 drilling data through October projected production through December

Drilling Productivity Report

1,276 1,253

Oil +23 barrels/day month over month

November

barrels/day

Bakken Region New-well oil production per rig barrels/day 1,400

Monthly additions from one average rig

December

Rig count rigs 250

new-well oil production per rig

1,200

200

rig count

1,000

1,601 1,588

December

November

Gas +13 thousand cubic feet/day month over month

thousand cubic feet/day

Bakken Region New-well gas production per rig

Rig count rigs

thousand cubic feet/day 8,400

250

new-well gas production per rig

7,200 6,000

200

rig count

800

150

4,800

150

600

100

3,600

100

2,400

400 50

200

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0

50

1,200 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Bakken Region Legacy oil production change

Bakken Region Legacy gas production change

thousand barrels/day 0

million cubic feet/day 0

(10)

(10)

(20)

(20)

0

(30)

(30)

(40)

(40)

(50)

(50)

(60)

(60)

(70)

(70) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(80) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Bakken Region Indicated change in oil production (Dec vs. Nov)

Bakken Region Indicated change in natural gas production (Dec vs. Nov)

thousand barrels/day

million cubic feet/day

75

+64

-58

+6

100

+80

-57

+23

75

50

50 25

25

0

0 Nov 1,101 Mbbl/d

Production from new wells

Legacy production change

Bakken Region Oil production

Net change

Dec 1,107 Mbbl/d

Oil +6 thousand barrels/day month over month

thousand barrels/day 1,400 1,200 1,000

800 600 400 200 0 2008

2009

2010

2011

2012

2013

2014

2015

2016

U. S. Energy Information Administration | Drilling Productivity Report

2017

Nov 2,041 MMcf/d

Production from new wells

Bakken Region Natural gas production million cubic feet/day

Legacy production change

Net change

Dec 2,064 MMcf/d

Gas +23 million cubic feet/day month over month

8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 5

Eagle Ford Region

November 2017 drilling data through October projected production through December

Drilling Productivity Report

1,124 1,090

Oil +34 barrels/day month over month

November

barrels/day

Eagle Ford Region New-well oil production per rig

Rig count rigs

barrels/day 1,800

1,500 1,200

Monthly additions from one average rig

December

350

new-well oil production per rig

300

rig count

250 200

900

150

600 300

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

4,503 4,283

December November

Gas +220 thousand cubic feet/day month over month

thousand cubic feet/day

Eagle Ford Region New-well gas production per rig

Rig count rigs

thousand cubic feet/day

9,000 7,500

350

new-well gas production per rig

300

rig count

250

6,000

200

4,500

150

100

3,000

100

50

1,500

50

0

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Eagle Ford Region Legacy oil production change

Eagle Ford Region Legacy gas production change

thousand barrels/day 0

million cubic feet/day 0

(20)

0

(100)

(40)

(200)

(60)

(300)

(80)

(100)

(400)

(120) (500)

(140) (160) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(600) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Eagle Ford Region Indicated change in oil production (Dec vs. Nov)

Eagle Ford Region Indicated change in natural gas production (Dec vs. Nov)

thousand barrels/day

million cubic feet/day

150

+88

-88

+0

400

100

300

50

200

0

100

-50

+351

-346

+5

0 Nov 1,222 Mbbl/d

Production from new wells

Legacy production change

Eagle Ford Region Oil production

Net change

Dec 1,222 Mbbl/d

Oil +0 thousand barrels/day month over month

thousand barrels/day 1,800

Nov 6,229 MMcf/d

Production from new wells

Eagle Ford Region Natural gas production million cubic feet/day

Legacy production change

Net change

Dec 6,234 MMcf/d

Gas +5 million cubic feet/day month over month

10,000

1,500

8,000

1,200

6,000

900 4,000

600

2,000

300 0 2008

2009

2010 2011

2012

2013 2014

2015

2016 2017

U. S. Energy Information Administration | Drilling Productivity Report

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 6

Haynesville Region

November 2017 drilling data through October projected production through December

Drilling Productivity Report

33 33

Oil 0 barrels/day month over month

Monthly additions from one average rig

December November

barrels/day

Haynesville Region New-well oil production per rig barrels/day 1,400

Rig count rigs new-well oil production per rig

1,200

rig count

1,000 800 600

November

Gas +26 thousand cubic feet/day month over month

thousand cubic feet/day

Haynesville Region New-well gas production per rig

Rig count rigs

thousand cubic feet/day

300

8,400

250

7,200

200

6,000

150

7,789 7,763

December

new-well gas production per rig rig count

300 250 200

4,800

150

3,600 100

400

50

200 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0

100

2,400

50

1,200

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Haynesville Region Legacy oil production change

Haynesville Region Legacy gas production change

thousand barrels/day 0

million cubic feet/day 0

0

(100)

(200)

(1)

(300)

(400) (2)

(500)

(600) (3) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(700) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Haynesville Region Indicated change in oil production (Dec vs. Nov)

Haynesville Region Indicated change in natural gas production (Dec vs. Nov)

thousand barrels/day 2.0

million cubic feet/day

+2

-2

+0

400

1.5

300

1.0

200

0.5

100

0.0

+374

-243

+131

0 Nov 45 Mbbl/d

Production from new wells

Legacy production change

Haynesville Region Oil production

Net change

Dec 45 Mbbl/d

Oil +0 thousand barrels/day month over month

thousand barrels/day 2,000

Nov 7,128 MMcf/d

Production from new wells

Haynesville Region Natural gas production million cubic feet/day

Legacy production change

Net change

Dec 7,259 MMcf/d

Gas +131 million cubic feet/day month over month

12,000 10,000

1,600

8,000

1,200

6,000 800

4,000

400 0 2008

2,000 2009

2010 2011

2012

2013 2014

2015

2016 2017

U. S. Energy Information Administration | Drilling Productivity Report

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 7

Niobrara Region

November 2017 drilling data through October projected production through December

Drilling Productivity Report

1,095 1,084

Oil +11 barrels/day month over month

November

barrels/day

Niobrara Region New-well oil production per rig barrels/day 1,400 1,200

Monthly additions from one average rig

December

Rig count rigs 140

new-well oil production per rig

4,269 4,259

December November

Gas +10 thousand cubic feet/day month over month

thousand cubic feet/day

Niobrara Region New-well gas production per rig thousand cubic feet/day 8,400

Rig count rigs 140

new-well gas production per rig

120

7,200

100

6,000

800

80

4,800

80

600

60

3,600

60

400

40

2,400

40

200

20

1,200

20

rig count

1,000

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0

120

rig count

100

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Niobrara Region Legacy oil production change

Niobrara Region Legacy gas production change

thousand barrels/day 0

million cubic feet/day 0

0

(30)

(10)

(60)

(20)

(90) (30)

(120)

(40)

(150)

(50) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(180) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Niobrara Region Indicated change in oil production (Dec vs. Nov)

Niobrara Region Indicated change in natural gas production (Dec vs. Nov)

thousand barrels/day

million cubic feet/day

80

+47

-40

+7

200

60

150

40

100

20

50

0

+183

-140

+43

0 Nov 516 Mbbl/d

Niobrara Region Oil production thousand barrels/day 1,000

Production from new wells

Legacy production change

Net change

Dec 523 Mbbl/d

Oil +7 thousand barrels/day month over month

800 600

Nov 4,753 MMcf/d

Production from new wells

Niobrara Region Natural gas production million cubic feet/day

Legacy production change

Net change

Dec 4,796 MMcf/d

Gas +43 million cubic feet/day month over month

6,000 5,000

4,000 3,000

400

200 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 U. S. Energy Information Administration | Drilling Productivity Report

2,000

1,000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 8

Permian Region

November 2017 drilling data through October projected production through December

Drilling Productivity Report

586 582

Oil +4 barrels/day month over month

Monthly additions from one average rig

December November

barrels/day

Permian Region New-well oil production per rig barrels/day 800 700

Rig count rigs

new-well oil production per rig

600

rig count

November

400 300

Gas +15 thousand cubic feet/day month over month

thousand cubic feet/day

Permian Region New-well gas production per rig

Rig count rigs

thousand cubic feet/day 4,800

600

new-well gas production per rig

500

4,000

400

3,200

400

300

2,400

300

200

1,600

200

100

800

100

600 500

1,050 1,035

December

500

rig count

200 100 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Permian Region Legacy oil production change

Permian Region Legacy gas production change

thousand barrels/day 0 (20) (40) (60) (80) (100) (120) (140) (160) (180) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

million cubic feet/day 0

Permian Region Indicated change in oil production (Dec vs. Nov)

Permian Region Indicated change in natural gas production (Dec vs. Nov)

thousand barrels/day

million cubic feet/day

200

+223

-165

+58

(50) (100) (150) (200) (250) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

500

+399

-229

+170

400

150

300

100

200

50

100

0

0 Nov 2,628 Mbbl/d

Production from new wells

Legacy production change

Permian Region Oil production

Net change

Dec 2,686 Mbbl/d

Oil +58 thousand barrels/day month over month

thousand barrels/day 3,000

Nov 9,020 MMcf/d

million cubic feet/day

15,000

12,000

1,500

9,000

1,000

6,000

500

3,000 2010

Legacy production change

Net change

Dec 9,190 MMcf/d

Gas +170 million cubic feet/day month over month

18,000

2,000

2009

Production from new wells

Permian Region Natural gas production

2,500

0 2008

0

2011

2012

2013

2014

2015

2016

U. S. Energy Information Administration | Drilling Productivity Report

2017

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 9

Explanatory notes

November 2017

Drilling Productivity Report The Drilling Productivity Report uses recent data on the total number of drilling rigs in operation along with estimates of drilling productivity and estimated changes in production from existing oil and natural gas wells to provide estimated changes in oil1 and natural gas2 production for seven key regions. EIA’s approach does not distinguish between oil-directed rigs and gas-directed rigs because once a well is completed it may produce both oil and gas; more than half of the wells do that.

Monthly additions from one average rig Monthly additions from one average rig represent EIA’s estimate of an average rig’s 3 contribution to production of oil and natural gas from new wells. 4 The estimation of new-well production per rig uses several months of recent historical data on total production from new wells for each field divided by the region's monthly rig count, lagged by two months. 5 Current- and next-month values are listed on the top header. The month-over-month change is listed alongside, with +/- signs and color-coded arrows to highlight the growth or decline in oil (brown) or natural gas (blue). New-well oil/gas production per rig Charts present historical estimated monthly additions from one average rig coupled with the number of total drilling rigs as reported by Baker Hughes. Legacy oil and natural gas production change Charts present EIA’s estimates of total oil and gas production changes from all the wells other than the new wells. The trend is dominated by the well depletion rates, but other circumstances can influence the direction of the change. For example, well freeze-offs or hurricanes can cause production to significantly decline in any given month, resulting in a production increase the next month when production simply returns to normal levels. Projected change in monthly oil/gas production Charts present the combined effects of new-well production and changes to legacy production. Total new-well production is offset by the anticipated change in legacy production to derive the net change in production. The estimated change in production does not reflect external circumstances that can affect the actual rates, such as infrastructure constraints, bad weather, or shut-ins based on environmental or economic issues. Oil/gas production Charts present all oil and natural gas production from both new and legacy wells since 2007. This production is based on all wells reported to the state oil and gas agencies. Where state data are not immediately available, EIA estimates the production based on estimated changes in new-well oil/gas production and the corresponding legacy change. Footnotes: 1. Oil production represents both crude and condensate production from all formations in the region. Production is not limited to tight formations. The regions are defined by all selected counties, which include areas outside of tight oil formations. 2. Gas production represents gross (before processing) gas production from all formations in the region. Production is not limited to shale formations. The regions are defined by all selected counties, which include areas outside of shale formations. 3. The monthly average rig count used in this report is calculated from weekly data on total oil and gas rigs reported by Baker Hughes. 4. A new well is defined as one that began producing for the first time in the previous month. Each well belongs to the new-well category for only one month. Reworked and recompleted wells are excluded from the calculation. 5. Rig count data lag production data because EIA has observed that the best predictor of the number of new wells beginning production in a given month is the count of rigs in operation two months earlier.

U. S. Energy Information Administration | Drilling Productivity Report

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Sources

November 2017

Drilling Productivity Report The data used in the preparation of this report come from the following sources. EIA is solely responsible for the analysis, calculations, and conclusions. Drilling Info (http://www.drillinginfo.com) Source of production, permit, and spud data for counties associated with this report. Source of real-time rig location to estimate new wells spudded and completed throughout the United States. Baker Hughes (http://www.bakerhughes.com) Source of rig and well counts by county, state, and basin. North Dakota Oil and Gas Division (https://www.dmr.nd.gov/oilgas) Source of well production, permit, and completion data in the counties associated with this report in North Dakota Railroad Commission of Texas (http://www.rrc.state.tx.us) Source of well production, permit, and completion data in the counties associated with this report in Texas Pennsylvania Department of Environmental Protection (https://www.paoilandgasreporting.state.pa.us/publicreports/Modules/Welcome/Welcome.aspx) Source of well production, permit, and completion data in the counties associated with this report in Pennsylvania

West Virginia Department of Environmental Protection (http://www.dep.wv.gov/oil-andgas/Pages/default.aspx) Source of well production, permit, and completion data in the counties associated with this report in West Virginia Colorado Oil and Gas Conservation Commission (http://cogcc.state.co.us) Source of well production, permit, and completion data in the counties associated with this report in Colorado Wyoming Oil and Conservation Commission (http://wogcc.state.wy.us) Source of well production, permit, and completion data in the counties associated with this report in Wyoming Louisiana Department of Natural Resources (http://dnr.louisiana.gov) Source of well production, permit, and completion data in the counties associated with this report in Louisiana Ohio Department of Natural Resources (http://oilandgas.ohiodnr.gov) Source of well production, permit, and completion data in the counties associated with this report in Ohio Oklahoma Corporation Commission (http://www.occeweb.com/og/oghome.htm) Source of well production, permit, and completion data in the counties associated with this report in Oklahoma

U. S. Energy Information Administration | Drilling Productivity Report

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