The new boss of Devon Energy Corp. said he won’t let this week’s rally in oil prices tempt him to return to the days of rampant production growth at any cost, becoming the latest shale executive to call for restraint.
“I have a hard time seeing the need for U.S. producers over the next several years to get back to double-digit growth,” Chief Executive Officer Rick Muncrief said in an interview. “For this management team, if we really think about 2021, let’s keep it flat.” (Bloomberg)
WPX & Devon Wells Drilled Mid Con Last 3 Year
Devon, which closed its acquisition of WPX Energy Inc. on Thursday, is planning to keep output flat compared with fourth-quarter levels, according to Muncrief, who previously ran WPX for six years.
Devon & WPX Well Permits (chart 1) and Wells Drilled (chart 2) Last 3 Years
U.S. crude production is currently hovering around 11 million barrels a day, about 12% of global demand last year, and some 2 million barrels below its peak at the beginning of 2020. Shale operators’ financial weakness and newfound pledges for discipline suggest that lost production, equivalent to the entire output of the U.S. Gulf of Mexico, won’t come back anytime soon.
For Devon, just keeping production flat will require the company to drill and frack new wells at a cost of around $1.7 billion in so-called maintenance capital, said Muncrief. The company is still finalizing its 2021 plan and intends to have updated estimates in the coming weeks.
Download Devon WPX Wells Drilled Last 3 Years
Other News
Get Free Weekly Permits Reports
* These fields are required.
Pingback:Mid Con Wells Spud Average Jan 2021 - Recovery – Oil Gas Leads
Pingback:Air Permits Related to Oil & Gas Facilities Jan 10 2020 – Oil Gas Leads