American Oil and Gas Reporter - June 2020 - 31

pages 30-31_THIS ONE 6/10/2020 3:52 PM Page 2

By Doug Walser
TOMBALL, TX.-U.S. producers of all sizes
responded to the economic shutdown and subbreakeven commodity prices by dramatically
cutting back budgets for drilling and completing
new wells, and by shutting in or restricting flow
from producing wells. The large number of wells
that were shut in from mid-March through early
May ranged from marginal vertical producers to
higher-rate horizontals. However, uncertainty
with respect to the ability to restore comparable
production in a higher-price environment
resulted in some degree of hesitation to shut in
older horizontal wells.
Mid-sized and larger operators with multiple
acreage positions have the luxury of choice in the
production restoration triage process as
commodity prices recover. The most active
operators have impacted a large percentage of
their total production cuts by working exclusively
with drilling and completion curtailment and
newer producing wells, leaving midlife and
legacy producers untouched, or at most,
implementing slowdowns in those wells. Smaller
operators and others with limited acreage and
play coverage simply have few options in
assuring minimal loss of reserves when
commodity prices reach the point where
economics warrant well restarts.
JUNE 2020 31



American Oil and Gas Reporter - June 2020

Table of Contents for the Digital Edition of American Oil and Gas Reporter - June 2020

Contents
American Oil and Gas Reporter - June 2020 - Intro
American Oil and Gas Reporter - June 2020 - 1
American Oil and Gas Reporter - June 2020 - 2
American Oil and Gas Reporter - June 2020 - Contents
American Oil and Gas Reporter - June 2020 - 4
American Oil and Gas Reporter - June 2020 - 5
American Oil and Gas Reporter - June 2020 - 6
American Oil and Gas Reporter - June 2020 - 7
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