Kin Communications would like to bring to your attention two recent articles that highlight new well-production activity in the Permian Basin as well as showcase the increasing demand for frac sand from U.S. oil producers.
Encana Corporation has released their plans to use a 14-well pad project in the Permian Basin. This ground-breaking design veers away from traditional design of 4 wells or less per pad and is a sign of the increase in demand for sand that has been called for by many analysts. Furthermore, Ethan Lou and Jarrett Renshaw outline the drastic increase in demand for sand that has occurred for sand producers in just the last 6 months.
See below for more details:
A Permian Drilling Factory Showcase by Encana
Utilizing pad drilling increases the complexity of logistics, but reduces the time from spud to completion decreasing the overall cost per well.
Of all the wells drilled on pads in the Permian, about 90% of them are drilled with four or less wells. A 14-well pad in the Permian is one of the first of its kind. Encana has steadily increased the number of wells per pad and are trending above peers like Oxy, Pioneer Natural Resources and EOG Resources.
U.S. fracking sand firms boost prices in sign of shale recovery
U.S. producers of sand used to extract oil from shale are raising prices due to stronger demand, a sign higher oil prices are improving the outlook for the domestic fracking industry.
U.S. shale oil companies, which pump sand into oil wells to make them more efficient, were ravaged by a 2014 global crude glut that hammered prices from more than $100 a barrel to near $26 in February 2016. Dozens fell into bankruptcy.