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February 9, 2021updated 26 Nov 2021 9:11am

Overall production is still declining in Scoop Stack shale play despite recovery in rig count in 4Q2020

By GlobalData Energy

GlobalData’s latest report, ‘Scoop Stack Shale in the US, 2021 – Oil and Gas Shale Market Analysis and Outlook to 2025’ provides a comprehensive review of the natural gas appraisal and development activity in Scoop Stack shale play against the backdrop of Covid-19 pandemic. It analyses the competitive landscape for operators in these plays on the basis of permit activity, investment trends, type well economics, and mergers and acquisitions (M&A).

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by GlobalData
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The Scoop Stack located in Oklahoma accounts for 4.5% of oil, and 7.2% of natural gas production in the United States Lower 48. Most of the oil production comes from the eastern part of the play and natural gas production increase while moving west. This play recorded its highest month of production in September of 2019, with 604 thousand barrels of oil per day (mbd) and 7.9 billion cubic feet per day (bcfd). After September 2019, the Scoop Stack has experienced a slow decline that was exacerbated by the effects of the Covid-19 pandemic.

To combat low commodity prices and weak demand due to the Covid-19 pandemic, most of the oil and gas producers reduced their planned capex guidance for 2020. Scoop Stack shale’s 11 major operators collectively cut their planned capital spending by 32% or $21.3bn from an initial capex of $66.3bn in 2020. This reduction also had a bearing on the pace of drilling and well completions in this shale play.

Devon Energy and Ovintiv Inc, the top two producers in the Scoop Stack shale, reduced their capex by 44% and 37% respectively, compared to initial capex spending plans for 2020. Another major player in this region, Continental Resources, also lowered its planned capital spending for 2020 by 54% after the crash in oil prices.

The Scoop Stack averaged 84 drilling rigs in 2019 and decreased to an average of 20 drilling rigs a 75% drop in 2020. Since commodity prices have stabilized from the Covid-19 pandemic rig count has increased a small amount in the Scoop Stack. But overall production is still declining in this region, while plays like the Permian Basin, Bakken, and Appalachia Basin have seen an increase in production in the second half of 2020.

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Navigate your business through the ‘new normal’

COVID-19 continues to dominate headlines the world over. It has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities.  Faced with an explosion of conflicting information on how to plan and implement successful recovery strategies, decision-makers are in dire need of a single, reliable source of intelligence.   GlobalData’s COVID-19 Executive Briefing gives you access to unparalleled data and insights to successfully navigate the uncertain road to recovery across the world’s largest industries. Understand every aspect of this disruptive theme by delving into: 
  •  COVID-19 infection update, with statistics on the spread, testing by country, as well as the latest data on vaccines and therapeutic developments 
  • Economic impact overview, covering stock market indices, GDP, unemployment rates, policy responses & GlobalData’s economic recovery scorecards 
  • Sector developments, with access to sector insight summaries, cross-sector indices and the leaders and laggards in each industry vertical 
Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today. 
by GlobalData
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