HOUSTON - Greater operating efficiencies in the top U.S. shale patch are squeezing out more oil without higher spending, according to the latest output numbers, which will boost global oil market supplies as OPEC also plans to unwind its output cuts later in the year.
Devon pointed to a 12% drilling efficiency gain this year from drilling and said it had improved feet per day of well completion by 6% year to date, pushing its full-year oil output up about 3%. Permian Resources has raised its oil production target by 1.5% this year. "For OPEC, what this means is, we see them ultimately not able to execute the current plan to bring production back over the course of 12 months," Chancellor said.Consolidation among U.S. shale producers had been expected to slow production growth this year with companies preoccupied with combining staff and sorting through new properties. But the benefits of being able to extend wells into adjacent areas has boosted productivity.
Chevron said it was one of the first to deploy triple-fracking technology, which fracks three wells in quick succession, reducing costs by more than 10% and shortening completion times by 25%. That has helped boost the number of production days, Chevron said. Falling rig counts have kept production from growing even faster, and this eventually will slow the rate of increase. The number of horizontal oil rigs working in the Permian fell by 20 to 295 in the latest week, according to data from Enverus. It has fallen by 100 in the last five years.LONDON, August 13, 2024-- DMO-TAS041/3320/004 The Minster Building21 Mincing LaneLondonEC3R 7AGT 020 7862 6500F 020 7862 6509www.dmo.gov.