EAGLE FORD–AUSTIN CHALK SHALES'CHEAP DRILLING,'BUT VERY FEW TAKERS

摘要

Boasting that you have ample running room has taken on an entirely new meaning across South Texas nowadays.With drilling sites in single digits and tons of pressure pumping horsepower put out to pasture,maintaining social distancing is little problem across the estimated 20,000-mi2 aerial reach of the Eagle Ford and overlying Austin Chalk unconventional play.As a result,operators this month are forecast to produce some 263,000 bopd less than they did in February,when the full brunt of bloated stockpiles and the demand-devouring coronavirus began to take hold,hurling prices into the nether regions.The benchmark West Texas Intermediate(WTI)price crawled up to around $40/bbl by mid-July,but operators appear in no hurry to put more crude on the market,even with completed well costs,in some cases,coming in below $5 million/well.