The backlog of wells in North Dakota that have been drilled but waiting to be fracked has increased in the last six months.
Last June, I mentioned there were 248 wells waiting for fracking crews.
In the July 2012 Director’s Cut report, Lynn Helms reports there is a backlog of 336 wells.
While that is an increase in numbers, that represents a decrease in the number of months worth of new wells. Let me explain.
I calculated the average number of new wells coming online as of May 2011, November 2011, and May 2012. I simply took the increase in number of producing wells according to the NDDMR web site for a six-month increment and calculated an average. Yes, I know that ignores the number of wells taken off-line, but I’m going for a simple calculation
Average monthly increase in number of producing wells was:
- 64 – six-month average in May 2011
- 121 – six-month average in November 2011
- 143 – six-month average in May 2012
So that means the 248 sites in May 2011 waiting for fracturing represented 3.9 months of average wells coming online.
In May 2012, the 336 Wells waiting to be fractured represent 2.4 months of average new Wells coming online.
That means the total number of fracking crews in the field is increasing.
Bottom line is that drilling, fracking, and new production are all ramping up. Cool.