These interactive presentations contain the latest oil & gas production data from 11,444 horizontal wells in Oklahoma, through December 2019. This is our first post on Oklahoma and maybe also the last one, as it will be part of the bigger US updates from now. Oklahoma is home to several tight oil & gas basins, such as the SCOOP and the STACK. Production data is not easily provided by the state agencies. Multiple sources and thorough cleansing is needed before the data can be used. I think we did a pretty good job with that so far and we still have ideas for more improvements.
Oil production from horizontal wells ended last year at just below 400 thousand bo/d, a few percent higher than a year earlier. Natural gas production came in just over 5 Bcf/d, also slightly up y-o-y. A significant amount of NGLs are produced as well, but these are not reported by our data sources.
You may sometimes notice some spikes up and down in the production data. These are data issues that are still left, after the many corrections that have already been applied.
The state has been hit very hard by the recent crisis and the horizontal rig count is at the lowest point in over a decade. Last week, only 20 rigs were active, down 86% from the 144 rigs that were operating in November 2018 (and 200 rigs at the end of 2014).
Based on the current rig count, our long-term projection shows that the state would only be able to sustain an output of about 1/3rd of the December level. You can see this in our publicly available Supply Projection dashboard, if you select only this state.
Well productivity in Oklahoma has steadily grown over the years (“Well quality” tab). These production results are however quite far behind compared with the other tight basins. For example, the 1,333 horizontal wells that came online in 2017 are on track to produce 80 thousand barrels and 0.84 Bcf of natural gas in their first 3 years, on average. This compares poorly with the Eagle Ford, where the wells that began in the same year will produce twice the amount of oil and the same volume of gas over that time frame. I am sure that there are many reasons why this comparison is too simple, but it probably does explain at least partially why interest has fallen dramatically, even before the latest rout.
Ovintiv (formerly known as Encana, which acquired Newfield 2 years ago) and Continental Resources are the largest oil & gas producers, as you can see in the final tab (“Top operators”).
These 2 operators also have the most productive wells in the state, as measured by the cumulative oil recovered in the first 2 years. The full ranking of all operators with at least 50 operated horizontal wells is displayed in this screenshot, taken from ShaleProfile Analytics:
The map shows all the wells that were included and they are colored by the same metric.
This “Ultimate recovery” overview shows the relationship between production rates and cumulative production over time. The wells are grouped by the year in which production started.
Water production data is unfortunately not available from the sources that we use.
Early next week we will have a new post on all covered states in the US, followed by an update on North Dakota which will release March production data in the coming days.
Production data is subject to revisions.
For these presentations, we used data gathered from the sources listed below.
- Oklahoma Corporation Commission – Oil & Gas Division
- Oklahoma Tax Commission
The above presentations have many interactive features:
- You can click through the blocks on the top to see the slides.
- Each slide has filters that can be set, e.g. to select individual or groups of operators. You can first click “all” to deselect all items. You have to click the “apply” button at the bottom to enforce the changes. After that, click anywhere on the presentation.
- Tooltips are shown by just hovering the mouse over parts of the presentation.
- You can move the map around, and zoom in/out.
- By clicking on the legend you can highlight selected items.
- Note that filters have to be set for each tab separately.
- The operator who currently owns the well is designated by “operator (current)”. The operator who operated a well in a past month is designated by “operator (actual)”. This distinction is useful when the ownership of a well changed over time.
- If you have any questions on how to use the interactivity, or how to analyze specific questions, please don’t hesitate to ask.
Enno: Thanks for providing the OK data, I think it gives readers a view of what these wells look like and where the State is headed.
OK has more stripper wells than all other states except for TX. I have some pretty good info that those are being shut in en masse.
Given the weakness of OK shale wells, rig count soon falling to near zero, frac spreads falling to near zero, and shut in of most of OK conventional wells, the oil production drop coming in May and June might be more dramatic in OK than in any other state in percentage terms.