According to the Drilling Productivity Report published by the U.S. EIA, the report count of DUCs was 5,957 in July, which was the lowest since November 2017. The reducing number of drilled but uncompleted wells across major onshore oil-producing regions is reported.
Particularly, the Permian region has witnessed a relatively higher number of completions with decreasing number of new good drilling activities. Even though the rising completion of more wells is enhancing oil production across the Permian region, the ratio is hampering DUCs inventories. With reducing DUCs inventories, the oil production across the United States could grow more stringent in the coming months.
The United States has five major oil-producing regions, out of which the DUCs in Bakken, Eagle Ford, and Niobrara regions have reported the lowest levels since last seen in December 2013. The other two, the Permian and Anadarko regions, have reported a decline in DUC levels, reaching their lowest since June 2018.
Despite the rise in well completion rate caused by the reducing DUCs in the Permian region, it has been argued that both the number of wells that are drilled and the well completed has been at their historically lowest levels.As per the updated report notifying the activity of Baker Hughes rig until September 3 observed that the count was 394 rigs. The rigs count has risen by 181 rigs, and it is not exactly a success story. The number is still observed to historically low when considering previous phases with similar crude oil futures prices.