SCOOP/STACK News Pulse September 2022

Posted: October 27, 2022

The SCOOP/STACK Basin | September 2022

Field Overview

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- 65 (-)
Total Rigs in United States- 769 (+10)
Total U.S. Rigs – 42% YTD

State Permitting Data
Permits Approved – 75


Basin Highlights

99-day streak of lower gas prices ends

While gasoline in Oklahoma is still quite expensive compared to prices a year ago, it has been getting cheaper and cheaper for nearly a 100 days in a row. Mid-June average price peaked at $5.02, now it is down to $3.68. Consumers rejoiced as prices continued to cheapen, but are now wondering whether or not the end of the streak means gas might begin to get more expensive again. Amid the continuing war perpetrated by Russia in Ukraine, and the end of oil releases by the SPR, the country may soon have to begin paying more for their gasoline. One factor that may help is the Biden administration’s desire to coral  votes by keeping prices in check.

First steps taken to address Oklahoma’s orphaned well problem

The federal government has been keen on handing out money to help states with their orphaned and abandoned oil and gas well issues. The latest state to receive some money is Oklahoma; $25 million will go towards 1,196 orphaned oil and gas wells across the state. While 1,196 is quite a few wells it is far less than the 17,865 in need of proper abandonment. Each well costs $40k to $70k to take care of, meaning the state will need much more money for the rest of the wells. Luckily the federal grant, part of the Bipartisan Infrastructure Law, has $4.7 billion total for abandoned wells in the country, meaning future phases can provide more money for those orphaned Oklahoma wells.

Oklahoma’s energy balancing act

Oklahoma is known as one of the staple oil and gas states in the country. Less known is that it is also one of the largest developers of renewable wind energy. Oklahoma receives millions of dollars of foreign investment into its wind industry by creating good incentive programs. Nearly 40% of electricity in the state is produced renewably. Oklahoma’s lieutenant governor Matt Pinnell, in an interview with fDi Intelligence, is quoted “We’re going to need oil and gas, and a lot of it, for the foreseeable future. We have to find ways that it can coexist with renewables.” While the state is heavily investing on renewable energy, it is still remaining pro-oil and gas. One sign of the booming fossil fuel industry in the state is their 65 active rigs, the most in many years.


Most Permits By Operator in OK

RankCompanyPermits
Approved
1Citation Oil & Gas13
2Citizen Energy10
3Ovintiv 8
4E2 Operating5
4Mewbourne Oil5
Hyperlinks to available Q3 2021 Reports

Rig Count


Oklahoma Oil Production


Oklahoma Gas Production


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The information contained in this newsletter is provided by RARE
PETRO Engineering, PLLC via the following sources unless otherwise
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www.eia.gov
www.drillinginfo.com
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Related Tags: News Pulse | Oklahoma | Scoop Stack

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