Precision Drilling Trust (PDS)

[eFinanceMarkets]

$PDS U.S. drilling creates “industrial inventory” of untapped wells waiting to flow

Oil companies left another 135 wells dormant in the Permian Basin in July, bringing the inventory of drilled but uncompleted wells to 2,330, up 73% Y/Y - wells that could add hundreds of thousands of barrels to surging U.S. oil output when the wells are brought into production.

"You drill, you move on, you frack [and] you get an inventory building," Precision Dilling (NYSE:PDS) CEO Kevin Neveu says. "The shift to multi-well pads has caused an industrial inventory of uncompleted wells to accumulate. The frackers can't keep up with the need."

The Energy Department expects Permian Basin production to rise by 64K bbl/day this month to 2.6M, part of the seven major U.S. shale plays that could pump 6.1M bbl/day, up by 117K bbl/day.