US Land Drilling Projected to Increase 15.4% in 2021
US land operators anticipate plans to increase the number of wells drilled in 2021 versus 2020 by 15.4% led by the Permian basin at 27.8% and the other US land basins combined at 9.8%.
Canadian operators anticipate drilling 21.9% more wells in 2021 versus 2020.
While operator budgets for 2021 have not yet been formally established or approved it is important to take note of the operator’s current sentiment and anticipated plans at this time.
These findings are based on interviews with 192 operators in the US and Canada during June and July 2020 and published in Kimberlite’s 2020 Hydraulic Fracturing report.
It is important to keep in mind that these projected increases, while look attractive, are based on current, historic low levels of activity.
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 4.5% longer in 2020 versus 2019 while drilling the wells in 1.4% fewer days. In addition, operators report completing their wells in 6% fewer days than in 2019. These achievements continue to allow US land operators to “accomplish more with less” and maintain oil production at relatively high levels even through rig count and frac crews are at historic lows.
Kimberlite will continue to track 2021 plans among the US land operators and report updates.