US land oil & gas operators report plans to drill 1.8% more wells in 2020 versus 2019 and Canadian oil & gas operators report plans to drill 4.3% more wells in 2020 versus 2019.
US land operators plans to increase drilling 1.8% in 2020 reflects decline in growth versus prior years and aligns with decreasing sentiment trends observed in the market during the past year. Regional variances, however, are observed with Permian basin operators projecting an increase of 6.9% more wells drilled in 2020 versus 2019 whereas many other regions are reporting slight decreases in planned activity or relatively little change in plans for 2020 versus 2019 activity levels.
Kimberlite Oilfield Research recently updated the 2020 drilling forecast based on interviews with 203 respondents from 138 E&P operators in North America.
US land operators continue to enjoy drilling efficiencies that allow them to drill wells more quickly than just 2 – 3 years ago. For example, US land operators report drilling lateral lengths that are on average 1.4% longer in 2019 versus 2018 while drilling the wells in 5.3% fewer days. This allows the US land operators to accomplish more with less and helps to offset the decline in drilling rigs operating with the ability to drill more wells each year per operating drilling rig.
Kimberlite will continue to track 2020 plans among the US land operators and report updates.