Utica production declines in 4Q 2016, but early 2017 recovery seems realistic

The latest published well production data from the Ohio Department of Natural Resources (ODNR) suggests that shale gas production in Ohio contracted by 180 MMcfd in 4Q 2016, with only 58 new wells turned in line. This represents a 54% YoY decline in activity compared to 4Q 2015, with rather flat development over the past year.

Among the top five Ohio Utica producers, only Chesapeake exhibited a significant negative trend, with production declining by 100 MMcfd in 4Q 2016. Meanwhile, Gulfport, Antero, Ascent, and Rice accounted for combined additions of 150 MMcfd. Gulfport showed the most impressive additional volumes, achieving 27% YoY growth. Among other players, XTO's gas output dropped from 234 MMcfd to nearly nothing, thus accounting for over 100% of Ohio's total production decline.

“It is conceivable, on the one hand, that XTO mistakenly reported daily production rates rather than total volumes. On the other hand, a sudden decline in early 4Q 2016 is consistent with the EIA-914 operator survey, implying that XTO could have shut in all wells early in the quarter” says Artem Abramov, VP Analysis at Rystad Energy.

Depressed 2016 completion activity notwithstanding, it is evident that current levels of activity are sufficient to maintain flat output in Ohio's Utica.

“Given the significant number of wells producing at restricted flows, as well as 150% growth in horizontal drilling activity from 1H 2016 to early 2017, we conclude that Utica is well positioned to begin restoring growth from Q1 2017, with production additions accelerating in 2H 2017” comments Abramov.

New service from OilVoice
Trip Shepherd is for companies who need to track their staff in areas of risk.
It's free to use, so we invite you to try it.

Visit source site


ShaleUticaRystad Energy

More items from rystad

Debt Crisis Undercutting Venezuelan Production

Rystad Energy analysis shows that the Venezuelan debt crisis has caused structural changes in the country's oil and gas sector which significantly undercut its capability to produce oil. As production falls, the country's ability to service its debt decreases which in turn increases the risk of defa ...

Julia Weiss

Posted 2 years agoPress > VenezuelaRystad EnergyOil

New gas discoveries and increased sanctioning activity expected to break the downward production trend in Trinidad

On June 2, 2017, BPTT announced two new gas discoveries offshore Trinidad - Savannah and Macadamia - together amounting to around 1.3 trillion cubic feet of recoverable resources, based on Rystad Energy analyses. In addition, the Angelin project discovered back in 1995 was announced sanctioned. The ...

Julia Weiss

Posted 3 years agoPress > Rystad EnergyTrinidadTrinity Exploration & Production +1

EQT’s acquisition of Rice Energy creates the leading US and Appalachian natural gas producer

On June 19, EQT Corporation (NYSE:EQT) entered into an agreement to acquire Rice Energy (NYSE:RICE) for 8.2 billion USD. In summary, EQT financing includes 5.4 billion USD in equity, 1.3 billion USD in cash and 1.5 billion USD assuming or refinancing of Rice net debt and preferred equity. According ...

Julia Weiss

Posted 3 years agoOpinion > Rystad EnergyShale GasEQT Corporation

Rystad Energy Annual Review of World Oil Recoverable Resources: Saudi Arabia adds oil resources ahead of IPO

In its annual account of global oil resources, Rystad Energy finds that Saudi Arabia has added enough recoverable oil resources to regain its top position ahead of the United States and Russia. The addition of 73 billion barrels of recoverable oil since the publication of Rystad Energy's 2016 annual ...

Julia Weiss

Posted 3 years agoOpinion > Rystad EnergySaudi ArabiaReserves

US oil production could reach all time high during 2017

Rystad Energy, the energy data warehouse, now predicts US oil production grows so fast that an all-time high of 10 million barrels per day could be reached before December 31st this year. In a monthly report on latest oil market trends, our analysts show US oil production growing at 95 kbbld per mon ...

Julia Weiss

Posted 3 years agoOpinion > Rystad EnergyUnited StatesProduction +1
All posts from rystad