Michael Byrd Quoted in Rigzone on Status of Drilled but Uncompleted Wells
Akin Gump oil and gas partner Michael Byrd was quoted by Rigzone in the story “DUC, DUC, Production Boost?” regarding drilled but uncompleted wells (DUCs), the impact on the oil market and the outlook for 2016.
The article notes that hundreds, if not thousands, of DUCs are idling in the United States, with many industry insiders uncertain as to how much they could produce or even when production might begin. Byrd said he anticipates companies will complete a significant percentage of the DUCs currently online, but that alone will not generate an overall increase in U.S. production.
“It will take a sustained recovery in oil prices to have that impact,” Byrd said. “Moreover, many suggest that once prices rebound, DUCs will get turned on and cause a huge flood of production, meaning that any oil price correction could be short-lived – which, in turn, would cause the increase in completions and new drilling to be short-lived.”