2016 In Review, 2017 Expectations

Andrew Dittmar, an upstream analyst at PLS, a Houston-based information and transaction firm, talks about the rise of the Delaware Basin, how investors view other shale plays in 2017 and what might happen this year.
By Staff | February 01, 2017

Andrew Dittmar, an upstream analyst at PLS, a Houston-based information and transaction firm, talks about the rise of the Delaware Basin, how investors view other shale plays in 2017 and what might happen in 2017 that many may not have expected. To read the full article, click here

Why was the Delaware Basin the “Play of the Year,” in 2016?

People knew there was a lot of oil there. It has the same stacked pay as the Midland, but it is a little more technically challenging. It took them a little longer to crack the code on it, but they knew the oil was there. In 2016, it looks like they cracked that code and it really opened up a land rush there.

Apart from the Permian, how will other major U.S. shale plays be viewed in 2017?

We expect those plays (Bakken, Eagle Ford) to be big winners when we come into 2017. As confidence builds in oil prices that we are going to hold above $50/b, we are going to see more interest in the oil plays and there will be less to buy in the Delaware Basin. Buyers are going to need to look into other plays.

Your team expects 2017 to be another positive year for shale. What is an element of shale development your team is following?

I think going forward companies are going to be able to go into Tier 2 acreage and get good well results that they didn’t think were possible in 2014 or 2015 through advances in unconventional drilling and completion technology.