The number of uncompleted oil production wells in the U.S. increased again

For the second month in a row, the number of wells drilled by U.S. oil and gas companies exceeds the number of completed wells, which is typical for slowing production. Relatively high prices and concerns about the global energy crisis failed to provide support.

The U.S. Energy Information Administration reported an increase in the number of oil and gas wells drilled but not completed (DUC). This is the second consecutive increase after the longest period of decline in DUCs since the beginning of the shale revolution, which lasted 27 months. Compared to October, the increase is 22 units and the total number is 4,443.

Drilling and hydraulic fracturing are the two major stages for putting a new shale well into production. The two phases require different work teams, which sometimes work several months apart. The creation of reserves from wells that are ready to be fracked, or their consumption, are reflected in the DUC calculations. The number of DUCs began to decrease during the pandemic, when producers shut down rigs and cut costs to the minimum because of oil price declines.