- May 7, 2019 6:03 pm GMT
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The number of drilled but uncompleted (DUC) US wells reached 8,500 in March 2019, a 26% jump from the previous year, according to US Energy Information Administration. The number of DUCs has increased steadily since the end of 2016 because of a few factors. A low oil and natural gas price environment may postpone well completion activities in areas where the wellhead break-even price is too high relative to the current market price. Another example may be the lack of available well completion crews to perform hydraulic fracture activities in areas of high demand. Takeaway capacity, or the ability to transport hydrocarbons through pipelines away from the resource, may also place additional constraints when pipeline networks are insufficient to accommodate supply. Are you surprised hat the number of DUCs has been increasing? What do you see as a few reasons for the market shift?