The SCOOP/STACK Basin | February 2022
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 basins 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- 51 (-)
Total Rigs in United States- 650 (+40)
Total U.S. Rigs 62% YTD
State Permitting Data
Permits Approved – 115
Due to inflation and supply chain constraints, Devon Energy forecasted a 15% rise in costs this year. This announcement comes shortly before the price of oil exceeds $100/bbl which will help fund the companies slightly higher costs, particularly those involved with labor and supplies such as sand. Devon share prices rose to $54.23 in February and with the recent 45% boost to its fixed dividend amount. The company reached $2.9 billion in free cash flow, in 2021, a new company record.
The temperature in February in parts of Oklahoma and Texas dropped to single digits Fahrenheits, consequently lowering production levels in the SCOOP and STACK. U.S. gas inventories are struggling to recover from the drop in production and rise in consumption during cold weather streaks across the state. Experts suspect that gas inventories will be below 1.4 Bcf at the end of the heating season. To put that number into perspective inventories at the end of the heating season are typically above 1,000 Bcf. This should trigger strong summer production to bring inventories back up to average ahead of the following winter.
A shocking discovery was made in early January near Oklahoma City, Oklahoma. A European Space Agency satellite picked up a large plume of methane gas near pipelines and wells. The oil and gas infrastructure in the area is owned by three different operators, two of which failed to make a statement and the other denied that they were the source. The Oklahoma Department of Environmental Quality was unable to identify the source, however, they remain in search of ways to reduce the amount of emissions, particularly methane, from the state.
Most Permits By Operator in OK
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Oklahoma Oil Production
Oklahoma Gas Production
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