February 2017
Special Focus

Producing oil wells down slightly, rebound in sight

The total number of active, producing oil wells in the U.S. dropped 2.7% last year. In spite of increased activity in the second half of the year, World Oil’s forecast data show the total number of active oil wells in the U.S. declined to 578,167 from 594,281.
Roger Jordan / World Oil Craig Fleming / World Oil
Estimated U.S. oil wells producing oil at the end of 2016*
Estimated U.S. oil wells producing oil at the end of 2016*

The total number of active, producing oil wells in the U.S. dropped 2.7% last year. In spite of increased activity in the second half of the year, World Oil’s forecast data show the total number of active oil wells in the U.S. declined to 578,167 from 594,281.

Texas. The overall drop in drilling activity during 2016 contributed to a reduction in producing oil wells in Texas last year. According to data provided by the Texas Railroad Commission, the state lost 3,690 producers, a drop of approximately 2%. Losses were reported in nine of the 12 districts, with Districts 4 and 7B experiencing the largest decreases on a percentage basis, at  –12% and  –7.2%, respectively.

Louisiana suffered a significant reduction in oil wells last year, with operators taking 1,395 offline, with the total decreasing to 17,976. Looking at the halves of the state, North and South Louisiana took similar percentage hits, with the North reporting 1,150 fewer wells at year-end, a reduction of 7.2%. South Louisiana experienced a 7.7% contraction, with 2,950 active wells flowing/pumping at year-end 2016.

MID-CONTINENT. The second-highest number of producing oil wells in 2016 was reported in Oklahoma, which experienced a 2.0% loss last year, with 91,738 active wells. North Dakota closed out 2016 with 14,000 active oil wells, an increase of 580 wells or 4.3%. Kansas reported 4,004 fewer wells, for a new total of 51,021, with 99.5% of these on artificial lift. Meanwhile, Kentucky experienced a 3.5% reduction, down to 17,599.

WEST/ROCKIES. The number of active wells increased to 50,972 in California last year, as the state reported a 5.3% increase. Colorado reported a minor 1.4% drop last year, with 14,640 wells active at year-end. Wyoming and Utah reported 203 and 172 fewer wells, respectively.

EAST. Ohio experienced a 3.8% decline in oil producers, down 1,059 for a year-end total of 27,113. Pennsylvania registered a 7.5% reduction. At year-end, the state accounted for 20,300 active oil wells, 1,640 fewer wells, from year-end 2015. Illinois dropped down to 12,500 producers, while West Virginia’s tally was 5.2% lower compared to the 2015 level.

FEDERAL WATERS. The number of active oil wells in federal waters took a dramatic plunge last year. The Pacific region dropped 36.2%, with BSEE reporting 156 fewer wells, than in 2015. The Gulf of Mexico proved more resilient, with a drop of just 16 wells, with 2,501 wells active at year's end. wo-box_blue.gif

About the Authors
Roger Jordan
World Oil
Roger Jordan roger.jordan@worldoil.com
Craig Fleming
World Oil
Craig Fleming Craig.Fleming@WorldOil.com
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