WoodMac: Wolfcamp spending could surpass that of Bakken by 2017

Activity in the Wolfcamp shale is expanding and, by as early as 2017, could overtake the Bakken in tight oil spending, according to analysis on the West Texas play from Wood Mackenzie.

Wolfcamp capital expenditures are expected to eclipse $12 billion during this year as rigs ramp up, ranking the Wolfcamp third behind the Bakken and Eagle Ford. That total is equal to about 80% of what will be spent in the Bakken this year (OGJ Online, Apr. 2, 2014).

Crude and condensate production from the play is expected to average 200,000 b/d during the year and reach 700,000 b/d by the end of the decade.

WoodMac notes that the Wolfcamp is still in its early development phase with less than 10% of total capital spent thus far. The firm increased the play’s capex forecast for 2015 by more than $4.3 billion to $13.9 billion to account for an influx of new entrants with capital. The Wolfcamp is now projected to generate $30 billion in remaining value.

Serving as a hub of activity has been the Midland basin, where an increase in acreage value is being facilitated through advancements in stacked pay development.

The Midland outpaces the emerging Delaware basin because of higher oil cuts, lower well costs, and better supporting infrastructure, WoodMac says, adding that it expects the basin to drive production for the next 2 decades with more than 40,000 remaining locations.

However, Benjamin Shattuck, WoodMac upstream analyst, says stakeholders should be cautiously optimistic, “While we have seen performance improve across all benches of the Wolfcamp, we are still waiting for an operator to effectively develop multiple benches over a sizeable acreage position.”

WoodMac adds that stacked pay potential has “stoked the flames” of the merger and acquisition market in the Wolfcamp, where the deal market had been dominated by operators making bolt-on acquisitions to grow out positions in established areas.

Related Articles

WoodMac: Western Canadian liquids production on upward trajectory starting in 2016

06/19/2015 Wood Mackenzie Ltd. believes the economics of core areas within shale plays in western Canada will yield comparable returns to key producing plays ...

Rosneft, BP sign upstream, downstream agreements

06/19/2015

OAO Rosneft agreed to sell BP PLC a 20% share of Taas-Yuryakh Neftegazodobycha in eastern Siberia for $750 million.

Total sheds stake in German refinery

06/19/2015 OAO Rosneft has completed a deal for the purchase of Total SA’s minority interest in the 11.5 million-tonne/year PCK Raffinerie GMBH refinery, loca...

MARKET WATCH: NYMEX crude oil prices climb back above $60/bbl

06/19/2015 Crude oil futures for July delivery rose modestly on the New York market to settle above $60/bbl in June 18 trading, marking its highest closing pr...

Fossil fuel protestors try to disrupt Natural Gas Roundtable event

06/18/2015 Fossil fuel protestors tried to disrupt a June 18 Natural Gas Roundtable (NGR) luncheon on Capitol Hill where four US House members were describing...

PBF Energy inks deal for Louisiana refinery, logistics assets

06/18/2015 PBF Holding Co. LLC, a subsidiary of PBF Energy Inc., Parsippany, NJ, has entered an agreement with ExxonMobil Corp. and Petroleos de Venezuela SA ...

Gazprom, KMG extend Karachaganak supply contract to 2038

06/18/2015

OAO Gazprom and JSC KazMunayGas (KMG) reported a contract extension to 2038 for supply from Karachaganak gas-condensate field in Kazakhstan.

Zion Oil & Gas makes executive appointments

06/18/2015 Dallas independent Zion Oil & Gas Inc. has appointed Victor G. Carrillo as chief executive officer and Glen Perry as president and chief operat...

Axiall updates plans for Louisiana ethylene project

06/18/2015 Axiall Corp. and South Korea’s Lotte Chemical Corp. have finalized joint-venture plans for the design, construction, and operation of a proposed 1 ...
White Papers

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by
Available Webcasts


OGJ's Midyear Forecast 2015

When Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

When Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST



On Demand

Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected