Global Information Inc. would like to present a new market research report, "Woodford Shale in the US, 2012 - Oil and Gas Shale Market Analysis and Forecasts to 2020" by GlobalData.
Woodford Shale Shows Increasing Growth in Overall Production
The Woodford shale play in Oklahoma has shown significant growth in its overall production and developmental activities in recent years. This shale play continues to be a major source of natural gas production in Oklahoma. Total gross production from the Woodford shale increased significantly in the historic period from 23.9 billion cubic feet equivalent (bcfe) in 2006 to 376.4bcfe in 2011, at a Compound Annual Growth Rate (CAGR) of 65.4%. According to the Oklahoma Oil and Gas Commission, Devon Energy Corporation reported the highest gross production of around 79.9bcfe from the Woodford shale in 2011. Newfield Exploration, BP Plc, Petroquest Energy, Antero Resources, Cimarex Energy, Cxontinental Resources, and ExxonMobil Corporation are some of the key producers in the Woodford shale play.
The developmental growth in the Woodford shale play has rewarded producers such as Devon Energy with high-quality natural gas over the historic period. However, in order to capture newer resources at lower costs, companies are now divesting their stakes and acquiring crude oil and liquids resources in the play. It is expected that the overall gross production from the Woodford shale will reach 445.7bcfe in 2012 and stabilize at 1,004.3bcfe in 2020.
Drilling Activity Sustains Intensity in Woodford Shale Despite Low Natural Gas Prices; Focus on Oil and Liquids-rich Portions of the Play
The Woodford shale has continuously contributed to major drilling activity in Oklahoma. A total of 321 wells were drilled and completed in 2011, a substantial increase from the 10 wells in 2004. The highest count of well completions in the Woodford shale was 534, recorded in 2008. In 2011, the majority of the wells in the Woodford shale produced both oil and natural gas. Out of these Woodford combination wells of oil and gas, around 307 wells produced large volumes of natural gas. In 2011, the count of Woodford combination wells producing oil stood at 156, a significant rise from the 92 wells in 2010 (OGS, 2012).
A significant drop in natural gas prices coupled with depleting gas reserves in the Woodford shale led to a decrease in drilling and development activities in the gas-prone Arkoma Woodford play in southeastern Oklahoma. As a result, oil and gas companies are shifting their focus to liquids-rich areas of the Anadarko and South Oklahoma Woodford shale. In 2011, Devon Energy, ExxonMobil Corporation, Continental Resources, and Newfield Exploration were some of the major drillers in the Woodford shale. Devon Energy had around 88 well completions in the Woodford shale in 2011, the most of any company, and was followed by ExxonMobil Corporation with around 51 well completions (OGS, 2012).