u.s. oil & gas production overview includes data supplied by ihs; copyright (2007) all rights...
TRANSCRIPT
U.S. Oil & Gas Production Overview
Includes data supplied by IHS; Copyright (2007) all rights reserved.
April 27, 2007
Robert P. Sutton, Marathon Oil Company
U.S. Oil Well Locations
Source: IHS
MS Streets & Trips
Oil Well – Location & Rate
Source:
IHS & ArcMap
U.S. Oil Production & Well Count
Source: EIA
US Historical Oil Well Facts
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Year
Oil
Rat
e, S
TB
PD
300
400
500
600
700
800
900
Wel
l Co
un
t, 1
000'
s
Production
Well Count
Drilling Activity & Oil Price
Source: EIA
US Oil & Gas Well Drilling Footage
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Fo
ota
ge
Dri
lled
, 100
0's
Ft
0
10
20
30
40
50
60
70
80
90
Fir
st P
urc
has
e O
il P
rice
, $/
ST
B
Footage
Oil Price
U.S. Oil Well Count & Price
Source: EIA
US Historical Oil Well Facts
0
100
200
300
400
500
600
700
800
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Year
Wel
l Co
un
t, 1
000'
s
0
10
20
30
40
50
60
70
80
Fir
st P
urc
has
e P
rice
, $/S
TB
Well Count
Price
Distribution – Well Count & Annual Oil Production
US Oil Well Distribution - Count & RateDec 2004
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
0.01 0.1 1 10 100 1000 10000 100000
Oil Production Rate, STBPD
Fra
cti
on
of
To
tal
Wells
Production
Source: IHS
Marginal Well 10 STBPD
Fractional Total of Marginal Wells Over Time
Source: IHS
US Marginal Wells
0.69
0.7
0.71
0.72
0.73
0.74
0.75
0.76
0.77
0.78
0.79
Jan-85 Jan-90 Jan-95 Jan-00 Jan-05 Jan-10
Fra
cti
on
of
To
tal
Maximum Oil Rate
US Oil Production
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Jan-80 Jan-85 Jan-90 Jan-95 Jan-00 Jan-05 Jan-10
Ma
xim
im O
bs
erv
ed
Oil
Ra
te, S
TB
PD
Source: IHS
Comparison of “Majors” & “Independents”
Source: IHS
US Oil Well Distribution - Well CountDec 2004
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
0.01 0.1 1 10 100 1000 10000 100000
Oi Production Rate, STBPD
Fra
cti
on
of
To
tal
Industry Total
"Majors"
"Independents"
Summary - Oil
• 506,000 Oil Wells (2005 EIA)• Avg Oil Rate is 10.2 STBPD/well (5.1 MMSTBPD)• Avg GOR is 1040 scf/STB• Avg Water Cut is 86.5%• Marginal wells account for 78% of the total active oil
wells• These wells account for 13% of the oil production• Production distribution among wells has remained
fairly constant over the last 20 years. The fraction of marginal wells has risen from 70 to 78%