Domestic Oil And Gas Completions, 2009-2011

The graph captures the industry transition from natural gas-focused targets domestically to liquids-oriented drilling. The lines reflect monthly completions for oil and gas wells, as recorded by the U.S. EIA. Publicly held oil and gas operators began the discussion on the “liquids rich” transition in the spring of 2010. Oil/gas completion lines subsequently converged in the second half of 2011 as operators ramped oil drilling programs. The trend towards liquids targets eventually blossomed in 2011 with oil completions clearly outdistancing natural gas wells. Of note, natural gas completions show a remarkable consistency from mid-2009 through 2011 even though the percentage of gas wells drilled horizontally increased significantly.