From Rystad Energy via OilPrice, August 15:
Most US onshore operators will
restore nearly all shut-in oil volumes by the end of the third quarter,
with only a handful maintaining some level of curtailment for the rest
of the year, a Rystad Energy analysis of 25 public oil operators’
second-quarter earnings statements shows.
Curtailments
from the 25 companies peaked in May with a net 772,500 barrels per day
(gross – including royalties to the government - 965,600 bpd) taken off
the market. Total cuts decreased to a net 680,300 bpd in June. In July,
only about 306,500 bpd in net volumes (383,100 bpd gross) remained
curtailed. This number is expected to fall to a net 74,300 bpd (92,900
bpd gross) in August, with nearly all production set to be reactivated
by September and just a small amount remaining offline.
The
cuts monitored in the sample group were implemented mostly in April and
May, and were entirely driven by economic and technical considerations,
with operators shutting in lower margin wells while reducing flowback
on others. A recovery in oil prices in the second half of May and a
stronger overall market outlook prompted many producers to re-evaluate
their shut-in plans.
As a
result, the actual total cut in May for several operators was lower than
earlier guided, and June curtailments decreased month-on-month. Nearly
all operators said they did not face any issues in bringing volumes back
online as per schedule, as they had already worked on issues such as
maintaining reservoir pressure and well integrity even before they began
moderating output or shutting in wells.
EOG
Resources highlighted that reactivation led to flush production before
wells returned to standard profiles, which resulted in
better-than-expected overall performance from these wells. Instances of
flush production are already reflected in June well production data....
....MUCH MORE
