The SCOOP/STACK Basin | April 2020
Current WTI price is $15.50/bbl. 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
Active Drilling Rigs in Basin- 8
Total Rigs in Oklahoma- 20
Total Rigs in United States- 465
Total U.S. Rigs down 51.9% YTD
State Top Producers
Top Gas Producer- Continental
Top Oil Producer- Updated Oil Production Coming Soon!
Financial & Economic Updates
Reeling Oklahoma oil producers win right to keep leases while wells shut
- Several U.S. states have considered aiding oil companies, many of which were already hurting before demand tanked during coronavirus pandemic lockdowns. That, and ballooning supply, sent U.S. prices into negative territory for the first time ever on Monday.
- In an emergency order, the state energy regulator said oil companies could consider their unprofitable production economic waste, allowing oil and gas producers with money-losing wells to retain leases that could otherwise be voided if they halted output.
- U.S. production reached a record-high of near 13 million bpd in late 2019, but the pandemic has cut worldwide consumption by 20% to 30%, or up to 30 million bpd. Supply cuts from producers led by Saudi Arabia only amount to about 10 million bpd, while private companies in the United States and elsewhere are scrambling to close wells to avoid being stuck with oil that they cannot profitably sell.
- Oklahoma was the fourth-largest oil producer in 2019, with output of about 580,000 bpd, but its production costs are among the highest in the country. More than half of the rigs operating in the state at the beginning of the year have been laid down, leaving just 24 currently, according to Baker Hughes figures.
Oklahoma governor calls on Trump to declare virus “act of God” to help oil and gas producers
- Oklahoma Governor Kevin Stitt is asking President Trump to declare the coronavirus pandemic an “act of God” in order to secure aid for the oil and gas industry. Crude oil prices dipped as low as -$40 earlier this month.
- Stitt said in the letter that “many operators desire to voluntarily reduce or cease producing on a temporary basis, without fear of parties taking advantage of an opportunity to cancel leases as a result of the curtailment of production.”
- Mr. Trump said last week that he’s told his Energy and Treasury secretaries to come up with a plan to provide financial relief for U.S. oil and gas developers.
Continental Resources sued by rival over failed $200 million oil deal
- Casillas Petroleum Resource Partners sued Continental Resources Inc, alleging the Oklahoma shale producer last month backed out of a $200 million oil and gas deal as prices crashed.
- On March 6, the day a supply pact by OPEC and allies collapsed, Continental agreed to buy oil and gas properties from Tulsa, Oklahoma-based Casillas. The deal was set to close roughly three weeks later, according to a lawsuit filed in Tulsa County District Court in Oklahoma.
- But Continental got cold feet and proposed to postpone the closing due to “changes in the oil and gas markets,” and then terminated the agreement on March 24 citing title and other problems, the lawsuit alleged.
Top Gas Producers
(MMscf / Month)
Oklahoma Gas Production
Oklahoma Oil Production
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