Producing gas well total declines slightly

The number of active, producing U.S. gas wells slipped 1.6% last year, from 501,535 to 493,421, although, according to the EIA, the country’s gross gas withdrawals hit an 11-year high at 95.8 Bcfd last November. Monthly production during 2017, through November, averaged 90.0 Bcfd, compared to 89.2 Bcfd in 2016. We predict more gas completions than P&As in 2018, because increased price, driven by high seasonal drawdowns, will spur activity in the Marcellus and Haynesville.

Texas. Dramatically lower drilling during 2016-2017 caused a 3.3% reduction in active gas wells in this most prolific state. According to the Texas Railroad Commission, the state lost 3,141 wells. Declines were reported in eight of 12 districts, with Districts 7C (Permian region) and 7B experiencing the largest decreases on a percentage basis, at -16.7% and -5.8%, respectively. Four districts reported increases, with the greatest percentage gains realized in South Texas Districts 1 and 2 at 3.9% and 4%, respectively.

Louisiana’s active gas wells rose 2.8% last year, to 19,217. All of the gain occurred in northern Louisiana, home of the Haynesville shale, where there was a 3.6% increase to 18,2351 wells. We predict an uptick in gas-related drilling to continue, pushing the active well count still higher. Southern Louisiana saw a 9.7% drop.

MID-CONTINENT. The country’s fourth-highest number of producing gas wells is in Oklahoma, which exhibited a 0.2% loss last year, with 41,530 active wells. However, increased activity in the  SCOOP/STACK plays should reverse this trend in 2018. In Kansas, the active well count dropped just 0.9%, to 24,295 wells. Many gas producers are in the giant Hugoton field in southwestern Kansas, producing at 2,600-2,700 ft, so drilling there does not register on the Baker Hughes rig count. 

WEST/ROCKIES. Gas production is minor, compared to oil output in California, where gas wells declined 7.6%. By contrast, Colorado has the fifth-highest gas well count nationally. Operators in the state added 2,124 gas wells in 2017, for a 6.2% increase. Wyoming saw its active well count increase 4.4%. 

EAST. The Marcellus shale has caused Pennsylvania to have the country’s second-highest gas well count, although the active number fell 12.5%, to 63,600. Appalachian operators continued to complete and reduce their DUC backlog during 2017. In Ohio, active wells were virtually unchanged at 33,325. Kentucky had the largest gas well increase, jumping 11.2% higher to 20,281. West Virginia’s tally is the third-highest in the country, gaining 1.7% to 58,169.