New Wells in Anadarko Basin Show Production Uptick

Anadarko Basin production uptick
A recent report from the Energy Information Administration indicates that new wells in the Anadarko Basin of Oklahoma and the Texas Panhandle are coming in slightly stronger than wells drilled a month previous.

The report (see Chart 1) reveals that, year over year, Anadarko Basin wells are coming in at 404 barrels per well, average, for crude production. A year ago (in May 2018), new wells in the Anadarko were registering 396 barrels per day. The 2019 uptick amounts to an 8 barrel per day increase.
Where natural gas production is concerned, Anadarko Basin new wells showed an increase of 16 thousand cubit feet per day, as compared to wells drilled here a year ago.
Chart 1
The report, which compares the Anadarko with the other six major basins in the Lower 48, does not differentiate between wells that are drilled more shallow, and thus perhaps are more economical, versus wells drilled much deeper. So production, taken by itself, is not necessarily an indicator of profitability, one region taken against another.
Meanwhile, Basin-wide crude oil production from all wells showed a slight decrease of 6 thousand barrels of crude per day in the Anadarko, month over month (from April to May), with natural gas also drifting downward, charting 18 million cubic feet per day less than in April 2019. (See Chart 2)
Chart 2
Where Drilled-But-Uncompleted (DUC) wells were concerned, the Anadarko saw a reduction of inventory from 1,048 wells to 1,019, marking a decrease of 29 wells. This latter survey measured changes between February 2019 and March 2019. (See Chart 3)
Even at a reduced number of 1,019, the Anadarko is proportionally high, on a nationwide scale, for quantity of DUCs. Comparing the Anadarko to the Permian, for instance, the Anadarko has 14 percent as much production, but has 25 percent as many DUCs.
The biggest producers of crude in the Lower 48 remain the Permian Basin, at 4.14 million barrels per day, followed by the Eagle Ford, at 1.42 million bpd, and the Bakken, at 1.37 bpd. For locations of all basins, see accompanying map.
Chart 3

EIA's Seven Key Regions

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