2. U.S. Upstream Almanac
January 2011
Table of Contents
1. Introduction 4
2. Continental United States 8
3. Rocky Mountain Region 30
4. Alaska Region 159
5. Offshore GoM Region 173
6. Gulf Coast Region 187
7. Mid-Continent Region 208
8. Permian Region 283
9. Ark-LA-Tex Region 291
10. Central Texas Region 312
11. West Coast Region 333
12. Eastern U.S. Region 374
13. Offshore Pacific Region 404
Data Source: HPDI, LLC. Production data as of August 2010; permitting data as of January 2011
U.S. Upstream Almanac
January 2011 2
4. Introduction
Key Themes
Oil Plays Are Being Targeted1
As the oil price/gas price
26.00x 8.0 80%
ratio has climbed from 8x
to nearly 26x, drillers
have progressively 7.0
focused more efforts to
6.4 6.5
oil-rich plays 6.3
6.1
21.00x 6.0 5.7 70%
The graph at right 5.5
compares:
Total oil and gas wells
% Gas of Total Wells Drilled
4.7
drilled (blue/gray 4.6
Oil Price / Gas Price
4.5
Wells Drilled (000's)
bars)
The percentage of 16.00x 4.0
3.9 3.9
60%
wells drilled targeting 3.6
gas (red line) 3.3
3.1
The oil/gas price ratio 2.9
(blue line)
Gas plays are clearly 11.00x 2.0 50%
losing favor as gas wells
have dropped from ~75%
of total wells drilled in Q1
2007 to ~45% in Q4 2010
6.00x 0.0 40%
2007 Q1
2007 Q2
2007 Q3
2007 Q4
2008 Q1
2008 Q2
2008 Q3
2008 Q4
2009 Q1
2009 Q2
2009 Q3
2009 Q4
2010 Q1
2010 Q2
2010 Q3
2010 Q4
Gas Wells Drilled Oil Wells Drilled % Gas Wells Oil Price / Gas Price
________________________________________
U.S. Upstream Almanac 1. Wells drilled are based on permits "At Total Depth" with timing based on permit granted date. Only wells classified as "Oil", "Gas" or 4
"CBM" are included (i.e., well types including Injection, CO2, Oil & Gas, Unclassified, etc. were excluded)
January 2011
5. Introduction
Key Themes (cont'd)
Horizontal Wells Are Increasing1
9,000 90%
As horizontal drilling
8,149
8,121
techniques are refined
8,049
7,950
and optimized, an
7,559
7,413
increasing proportion of
7,351
7,151
wells drilled are utilizing
6,988
6,840
this technology
6,643
Since Q1 2006, horizontal
wells have increased from 6,000 60%
9% of total wells drilled to
5,034
34% Q4 2010
4,493
Wells Drilled
4,331
% of Total
In the same time period,
4,040
vertical wells have
3,631
dropped from 81% of
3,351
3,275
3,139
total wells drilled to 57%
2,891
3,000 30%
2,458
2,289
2,143
2,122
2,093
1,986
1,932
1,765
1,758
1,650
1,616
1,521
1,408
1,323
1,320
1,201
1,102
1,041
1,008
903
0 0%
2006 Q1
2006 Q2
2006 Q3
2006 Q4
2007 Q1
2007 Q2
2007 Q3
2007 Q4
2008 Q1
2008 Q2
2008 Q3
2008 Q4
2009 Q1
2009 Q2
2009 Q3
2009 Q4
2010 Q1
2010 Q2
2010 Q3
2010 Q4
Horizontal Vertical % Horizontal % Vertical
________________________________________
U.S. Upstream Almanac 1. Wells drilled are based on permits "At Total Depth" with timing based on permit granted date. Directional are not shown on graph but 5
are included in "% of Total" calculations
January 2011
6. Introduction
Key Themes (cont'd)
Top Horizontal Plays
1,353
Barnett 0.45x
The Barnett Shale 3,030
retained the top spot for 970
Marcellus 10.66x
horizontally drilled 91
formation, but also came 820
Haynesville 7.39x
up the biggest loser in 111
terms of growth Fayetteville
812
0.88x
928
The Eagleford, Niobrara, 724
Marcellus and Haynesville Eagleford 45.25x
16
shales showed the largest 575
Bakken 0.97x
two-year growth, with 591
multiples ranging from 280
Woodford 1.07x
10x to 45x from 2008 to 261
2010 181
Cleveland 1.01x
180
Moderate gains were
171
seen in the Granite Wash, Granite Wash
61
2.80x
Bone Spring, 120
Mississippian and Bone Spring 3.53x
34
Spraberry Wolfcamp 102
Austin Chalk 0.80x
formations 128
95
The Bakken, Woodford Niobrara 13.57x
7
and Cleveland held
93
relatively flat, while the Mississippi
24
3.88x
Fayetteville, Austin Chalk
83
and Cotton Valley showed Spraberry Wolfcamp
66
1.26x
negative growth 80
Cotton Valley 2010 2008 0.68x
118
0 500 1,000 1,500 0.00x 10.00x 20.00x 30.00x 40.00x 50.00x
Horizontal Wells Drilled Two-Year Growth (2008-2010)
________________________________________
U.S. Upstream Almanac 1. Wells drilled are based on permits "At Total Depth" with timing based on permit granted date. 6
January 2011
7. Introduction
Key Themes (cont'd)
Top Horizontal Areas
3,468
TX 0.84x
Texas retained the top 4,114
spot by a wide margin for 1,005
ND 1.45x
horizontal wells drilled, 691
but came up a loser in 923
OK 1.02x
terms of growth 908
911
The biggest growth LA
169
5.39x
occurred in Colorado, 881
Pennsylvania, Louisiana PA 5.76x
153
and New Mexico driven by 822
AR 0.86x
the Niobrara, Marcellus, 959
Haynesville and Bone 239
NM 2.37x
Spring/Spraberry, 101
respectively 150
KY 0.70x
215
118
WV 1.01x
117
107
CO 7.13x
15
74
MT 1.14x
65
55
WY 1.53x
36
43
IN 1.65x
26
20
MS 0.63x
32
19
MI 2010 2008 0.34x
56
0 1,500 3,000 4,500 0.00x 5.00x 10.00x
Horizontal Wells Drilled Two-Year Growth (2008-2010)
________________________________________
U.S. Upstream Almanac 1. Wells drilled are based on permits "At Total Depth" with timing based on permit granted date. 7
January 2011
8. Introduction
Presentation Guide
Organization & Flow Standard Slides
Integral Advisors' US Upstream Almanac is a comprehensive
Introduction Slide
analysis of drilling and permitting data, providing key insights that
Key information
oil & gas professionals find useful
Top producers and permitters
The Almanac is organized in order of increased detail, beginning Well & permit activity map
with the Continental United States, followed by Regions, and
ending with Basins.
Integral worked with our data provider HPDI, LLC (www.hpdi.com)
to parse production and permitting data out into 54 specific basins, Vintaged Rate & Well Additions
which Integral has further grouped in 12 regions Production and well additions by year
since 2001
There are two key data sets in the Almanac: Data parsed by gas, oil and total
Historical Activity: Historical production and well additions are equivalent
broken out by oil and gas, and top operators are ranked over
the last twelve month ("LTM") time period
Future Activity: Permitting activity is broken out by operator
Quarterly Permits
and targeted formation
Top formations permitted over last 5
years
Continental United States Shown quarterly on graph, with
annual data below
Regions (12)
(Rockies, Alaska, Offshore GoM, etc.)
Tabular Data
Basins (54) Top producers and permitters shown
(Green River, DJ, for last twelve months ("LTM")
Sacramento, etc.)
U.S. Upstream Almanac
January 2011 8
10. INSERT 11X17 MAP FOLDED HERE
U.S. Upstream Almanac
January 2011 10
11. Continental United States
Overview
Continental U.S. Summary
Production Statistics Top Operators by Production (LTM)
Wells Drilled: 2,800,000+ BP AMERICA PRODUCTION COMPANY 15,533
EXXON MOBIL CORPORATION 6,156
First Reported Production: 1900
CONOCOPHILLIPS COMPANY 5,053
% Gas (LTM Production): 69% CHEVRON, U.S.A., INC. 4,654
Cum. Production: 891.8 Tcf (gas) & 116,799 MMBbl (oil) CHESAPEAKE ENERGY CORPORATION 3,860
No. Active Wells: 954,541 ANADARKO PETROLEUM CORPORATION 3,490
DEVON ENERGY CORPORATION 2,708
Avg. Daily Production (LTM): 99,867 MMcfepd
RD SHELL 2,572
Implied Prod. / Active Well: 105 Mcfepd ENCANA CORPORATION 2,539
OCCIDENTAL ENERGY COMPANY,INC. 2,430
Incremental Wells Drilled APACHE CORPORATION 2,006
EOG RESOURCES INCORPORATED 1,992
60,000 80% SOUTHWESTERN ENERGY COMPANY 1,391
49,716 75% THE WILLIAMS COMPANIES, INC 1,323
50,000
44,255 44,261 QUESTAR CORPORATION 1,070
70%
AERA ENERGY SERVICES COMPANY
Incremental Wells Drilled
38,757 966
40,000
33,271 65% EL PASO CORPORATION 888
% Gas Wells
31,373
29,787 SAMSON OIL & GAS USA INC 887
30,000 27,346 27,136 60%
24,041 BHP BILLITON 865
55% NEWFIELD EXPLORATION COMPANY 819
20,000
MERIT ENERGY COMPANY 771
50%
SANDRIDGE ENERGY, INC. 769
10,000
45% NOBLE ENERGY, INC. 763
KINDER MORGAN INCORPORATED 762
0 40%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 PIONEER NATURAL RESOURCES COMPANY 742
Annualized
0 5,000 10,000 15,000 20,000
Gas Oil % Gas MMcfepd
U.S. Upstream Almanac
January 2011 11
12. Continental United States
Production & Well Additions
Rate & Annual Well Additions by Year (Gross)
7 14,533 16,000
6 14,000
Incremental Oil Wells
10,365 10,602 10,93512,000
5 9,705
Oil (MMBopd)
9,046
10,000
4 7,767 7,766
7,078
6,259 8,000
3
6,000
2 4,000
1 2,000
0 0
80 35,183 40,000
33,890 33,659
70 35,000
29,052
Incremental Gas Wells
60 25,505 30,000
Gas (Bcfpd)
23,606 22,709
50 21,087 25,000
18,090
40 20,000
13,106
30 15,000
20 10,000
10 5,000
0 0
120 60,000
49,716
100 44,255 44,261 50,000
Total Incremental Wells
Total (Bcfepd)
38,757
80 33,271 40,000
31,373 29,787
27,346 27,136
60 24,04130,000
40 20,000
20 10,000
0 0
Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10
Prior Years 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Wells Drilled
U.S. Upstream Almanac
January 2011 12