Drillinginfo often looks at well counts to give a snapshot view of operator dominance in a basin. But average well performance might be a better indicator of which operators are worth watching. In the Delaware Basin this graph demonstrates that high well counts don’t necessarily predict better produced 12-month cumulative barrels of oil equivalent. This implies that operator efficiency should be factored into basin dominance perspectives. (Source: Drillinginfo, DI Web app)

At least in the Delaware Basin it looks like there is a direct relationship between amount of perfed interval and 12-month cumulative barrels of oil equivalent. Investigating anomalies by operator can yield useful intel on best-in-class completion practices. (Source: Drillinginfo, DI Web app)

Press releases often focus on IP results as an indicator of the deliverability of well products to sales. Drillinginfo reports a better predictor is the peak rate (month with greatest production volume/number days in month adjusted for days on when possible). (Source: Drillinginfo, DI Web app)

Given the explosive activity in the Delaware Basin that has been driven by both Apache’s Alpine High and U.S. Geological Survey Permian Basin Wolfcamp reserves statements, it’s worth noting the Delaware Basin has a relatively low percentage of drilled but uncompleted wells (DUCs) compared to other basins. More analysis is required to determine whether this is due to better margins from higher oil deliverables, higher EURs or from authorization for expenditure reductions. The different shades of red indicate the number of datapoints in the sample. More datapoints mean a darker red. (Source: Drillinginfo, DI Analytics/Rig Analytics)

The level of activity measured by rig count shows that nearly 20% of U.S. rig placements/activity is occurring in the Delaware Basin, more than any other basin in the country. The different shades of purple indicate the number of datapoints in the sample. More datapoints mean a darker purple. (Source: Drillinginfo, DI Analytics/Rig Analytics)

US onshore regulatory overview

Jack Belcher and Beth Everage, HBW Resources LLC

Federal actions

EPA withdraws information collection request (ICR). On March 2 the U.S. Environmental Protection Agency (EPA) withdrew its final ICR to gather extensive data on existing sources of methane emissions from owners and operators of the oil and gas industry, effective immediately.

Consolidated federal oil and gas and federal and Indian coal valuation reform rule facing repeal. A Senate resolution (S.J. Res. 29) was introduced to undo changes to fossil fuel royalty calculations. A House companion (H.J. Res. 71) was introduced in February.

U.S. Geological Survey report forecasts lower incidence of human-induced earthquakes for 2017. Officials said the risk of manmade earthquakes attributed to oil and gas activity in Texas and Oklahoma is reduced as companies have slowed production and disposal of wastewater. However, these regions as well as areas along the Colorado-New Mexico border remain at an elevated risk for seismic activity.

State/local actions


  • The Department of Public Health and Environment released a report in early March determining there is “little evidence that living near oil and gas sites poses health dangers.”
  • Broomfield City Council voted to postpone a vote on a proposed hydraulic fracturing moratorium indefinitely. The city will begin work on a plan to determine siting of oil and gas wells.


  • Railroad Commission Chair Christi Craddick has requested funding from the Texas Legislature to build an online database to track compliance as well as add 55 new inspectors for energy production sites and pipelines. This request comes at a time when the agency faces increased calls for online reporting.