A new report by the federal government indicates there are nearly 5,000 drilled but uncompleted wells nationally. The U.S. Energy Information Administration released its monthly Drilling Productivity Report showing DUC counts at the end of august totaled 4,117 in the four oil-dominant regions. Another 914 are in the three-gas-dominant regions.
The estimated DUC count in the oil regions represented an increase during 2014-15 but dropped by nearly 400 over the last five months. The EIA indicated there was a deeper decline of completions than drilling activity in the Bakken, Niobrara, Permian and Eagle Ford areas. The administration suggests the difference in drilling and completions is due to long-term contracts for drilling rigs and lease contracts that mandate drilling and/or production in order to fulfill commitments made to the landowners and mineral-rights owners.
