Oklahoma 2018

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OKLAHOMA: PRODUCTION FORECAST 48 | November 2018 | When looking at production rates of wells com- pleted in the Anadarko Basin, a clear trend can be found. Better performing categories based on peak rates have risen. The top three categories in 2010 through 2013 consisted of roughly 10% to 25% of all wells drilled in the Anadarko Basin. Looking into the next period from 2013 through 2015, there were improvements in these top three categories with increases from 30% to 60%. From 2015 to this year, the top three categories capture the majority of all wells drilled in the Anadarko Basin. Long-term improvements Figure 6 shows an incredibly powerful trend in the Stack play. The share of wells in the fi rst and second quartiles increased markedly with the collapse in oil prices. Moreover, the shift has been maintained. Important contributions and changes set the stage for this performance. Longer laterals coupled with refi ned comple- tion designs pushed down costs and increased production per foot of stimulated reservoir. These new completion designs rely on greater amounts of proppant, which is increasingly sourced from local sand mines, to prop open the fracture net- work more completely. Greater conductivity in the fracture network results in better performing wells. On average, lateral lengths in the Stack rose 68% from 4,400 ft in 2012 to about 7,400 ft recently. With that, proppant loads also increased. Average normalized proppant loads rose more than 150% from 736,224 lb per 1,000 ft in 2012 to more than 2.3 MMlb per 1,000 ft recently. Other important changes made in recent years include increasing adoption of in-sourcing. The wider adoption of operators procuring their own consumables and selected materials was driven by a need to control and reduce costs, and by other fac- tors including a desire to choose environmentally friendly alternatives for use in wells. In short, the Midcontinent oil and gas commu- nity carried out measures needed to keep the region relevant in today's oil and gas industry. The indus- try responded to a price shock by applying tech- nology and knowledge gained over years toiling in a challenging area, and applied the lessons learned to the most competitive assets in the region. Con- sequently, the Midcontinent region is poised to continue contributing to domestic production for many years to come. Q FIGURE 6. Percent of Total Stack Wells

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