Production in Oklahoma’s Scoop Stack shale play is forecasted to hit 342,000 barrels of oil per day and 5.8 billion cubic feet per day this month, according to GlobalData’s latest report.
The figures mark a 43 percent decline in oil and a 27 percent dip in natural gas from the play’s peak in September 2019, which saw highs of 604,000 barrels of oil per day and 7.9 billion cubic feet of gas per day, GlobalData highlighted. GlobalData outlined that this “sharp decrease” in production is linked to a “drastic” drop in rig count, “with companies reducing capital expenditure, as well as focusing capex in other plays”.
“The Scoop Stack averaged 84 drilling rigs in 2019 and decreased to an average of 20 drilling rigs in 2020, which is a 75 percent drop,” Andrew Folse, an oil and gas analyst at GlobalData, said in a statement sent to Rigzone earlier this week.
“Since commodity prices have stabilized from the Covid-19 pandemic, rig count has increased a small amount in the Scoop Stack. With West Texas Intermediate (WTI), future prices are averaging $51.37 per barrel for the remainder of 2021, GlobalData expects an uptick in the rig count, but not to the level that was present in 2019,” he added.
With current futures prices, GlobalData expects oil production in the Scoop Stack to average 373,000 barrels of oil per day and 5.8 billion cubic feet of gas per day in 2021.
The Scoop Stack accounts for 4.5 percent of oil and 7.2 percent of natural gas production in the United States Lower 48, according to GlobalData, which highlights that the largest producers in the play are Continental Resources, Devon Energy, Cimarex Energy, and Ovintiv.
GlobalData describes itself as a leading data and analytics company. The company provides data and analysis across a range of industries, including healthcare, consumer, retail, technology, and financial and professional services, as well as energy.
To contact the author, email andreas.exarheas@rigzone.com
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