Aug 07, 2016 at 11:34 AM CST
Well costs continue to decrease while well designs improve.
As operators get better at creating induced fractures, more proppant is required.
Mega-Fracs have shown a significant improvement in recoveries and this is why we are seeing operators complete more wells like this.
From 2004 to 2013 operators increased proppant usage by 636% in ND.
In 2011 only one Mega-Frac was completed, but this increased to 78 in 2014.
The US oil industry has made significant changes since the oil price collapse. The results have reduced well costs, and increased production. The economics of unconventional oil production have improved. Some areas need just $40/bbl or less to breakeven. The decrease in the price of WTI has brought down the US Oil ETF (NYSEARCA:USO).