With around 400 horizontal rigs at work in the Permian basin, the number of drilled but uncompleted (DUC) wells topping 3000 and production growing quickly year-on-year, the region’s service infrastructure is under pressure to build capacity, writes Russell McCulley.
Analysts are warning of severe bottlenecks in well completion services and, more urgently, in midstream export capacity.
The pressure is building earlier than some had expected, said Wood Mackenzie analyst Daniel Romero.
