2018 is already off to a hot start with increased activity in January. With the White House passing the largest piece of tax reform legislation in more than three decades, many energy companies have stated they are planning to expand activity and increase capital spending on operations. 

January saw an 8% increase in the WTI spot price, enticing operators to increase drilling activity and complete previously drilled wells.

Goldman Sachs recently increased their 6 month price target for oil to more than $80/bbl and raised their demand projections by 100,000 bbl/day. If prices follow analysts’ expectations, activity will increase in the oil patch during 2018.

Drilling activity in the STACK is steady, with Devon Energy continuing to be the number one operator by number of wells spud.

Figure 1: Top 10 Operators by Number of Wells Spud in January 2018

The number of intents filed increased from December 2017 to January 2018, with the most activity in Kingfisher and Grady Counties. Expect these numbers to increase further as prices continue to rise.  

Leasing activity was the most active in the Arkoma:

Figure 2 - Top 10 Counties by Leasing Activity

• WSGP leased more than 75,000 gross acres in Pittsburg County during January, continuing their trend from December when they leased more than 50,000 acres.
• Triumph Energy Partners is the second most active, increasing their position in the STACK by leasing more than 40,000 acres in Blaine County.
• One to watch is Duke Minerals, which has been consistently acquiring acreage in the Arkoma: 20,000 gross acres in December and January.  

For more analysis, keep an eye out for our 2017 year-end report. Contact one of our Oseberg Experts for more information.