As operators continue to grapple with a $40/bbl oil price environment, many are looking for ways to balance declining production with capital expenditures. In the Permian, a familiar, but perhaps currently under-emphasized story of DUCs and excess backlog has the potential to play a significant role. As oil prices began to rapidly deteriorate in March, operators responded quickly and both completions and drilling activity fell precipitously. However, completions fell faster and further than drilling activity. As a result, the excess backlog of wells in the Permian Basin sky-rocketed from ~350 wells in February to over 2,300 wells by May. Depending on the location of these wells and timing of completions, there is ~1.8 MMb/d of production potential.
https://btuanalytics.com/crude-oil-pricing/1-8-mmb-d-permian-production-potential-from-ducs/
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