The SCOOP/STACK Basin | May 2020
Ranking 6th in oil production and 3rd in natural gas production, the SCOOP/STACK play is one of the largest fields within the continental United States. It is primarily a shale play, with the Anadarko and Ardmore basin’s providing a bulk of the production. Some of the top formations are the Woodford Shale and Hunton Carbonate.
State Drilling Statistics
Total Rigs in Oklahoma- 12
Total Rigs in United States- 301
Total U.S. Rigs down 69% YTD
Financial & Economic Updates
A Titan Begins to Fall
Chesapeake Energy Corporation announced that bankruptcy is an option after posting a net loss of $8.3 billion in the first quarter. At its largest, 12,600 people were employed with Chesapeake. After half a decade of cuts, that number dwindles to 1,900 people. Instead of using bankruptcy to restructure its debt, Chesapeake has also considered going private, although they have noted that there is no guarantee it will succeed in restructuring. A line in Chesapeake’s filing reads, “management has concluded that there is substantial doubt about the company to continue as a going concern.”
Mixed Feelings around Right to Claim Economic Waste
Oklahoma met early in May to establish some new policies to aid producers within oil and gas. After a long meeting, no action was taken as some became upset with the decision to declare some production as economic waste. Most operators support the proposals as they are unsure of what future prices will be, and some buyers have already said that they will not be purchasing due to lack of storage. Crawley Petroleum Corporation stands against the crowd arguing that the implications down the road could be devastating. “The notion that we don’t have the right to do this (shut it wells) absent of this order is a fallacy,” said Crawley CEO Kim Hatfield. He urges policy makers to reconsider the order as it may establish a precedence for lawsuits in the future.
Oklahoma Oil Production
Oklahoma Gas Production
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