6% Decline in Permian Well Completions Based on Westwood’s SatScout

The Permian bottleneck and differentials* are impacting the frac crew count and well completion numbers, according to Westwood Global Energy Groups (Westwood) SatScout service. The service from Westwood generates pad construction, drilling rig on location, and frac crew on pad data for the Permian through proprietary, machine learning based analysis of daily satellite imagery.

In September, the number of observed well completions decreased 6% to 472 wells compared to 502 in the previous month and 510 wells completed during the peak month of June 2018.

This decrease in activity equates to a loss of 185,000 tons of frac sand demand for the month and a decline in 375 million gallons of water demand for September fracturing jobs.

The Delaware and Midland Basins are paramount to the US shale story, said Boyd Skelton, Vice President of Operations for Westwood Global Energy Group. He added; The public and private E&Ps we monitor are feeling the constraints in the Permian market. You can see the softening demand for horsepower, frac sand, and water based on the decline in last months observed completions. The market is fluid with operators acting swiftly to changing conditions.

The top 15 most active Permian operators by number of wells completed in 2018 include 13 public and 2 private operators. In September, the top 15 operators accounted for 46% of all activity and declined by 8% from the previous month. One operators well completion activity more than halved.

Using daily satellite imagery, machine learning, and the Westwood team of analysts, SatScout can identify when an operator has constructed a pad, rigged up for drilling, or started fracturing the well with a frac crew. Critically, SatScout provides notifications of activity for public and private oil and gas operators before the information is reported in quarterly earnings, investor presentations, or via state regulatory organizations.

Westwoods daily monitoring of the Permian Basin provides visibility into the number of frac spreads, well completions, and operator activity for the worlds most prolific oil growth region. Visit http://energentgroup.com/satscout-proprietary-well-completions-data

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Notes to Editors

* Limitations to the Permian Basin production takeaway capacity are causing a bottleneck in the Permian i.e. production can only continue to grow as long as the infrastructure is there to support it. Differentials refers to the discount between WTI and Brent which has surged to over $10 a barrel since July 2018.

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