Exploration and production (E&P) operators in the U.S. onshore are ramping up drilling activity, particularly in the Permian Basin, to offset the shrinking drilled but uncompleted (DUC) well inventory, according to ESAI Energy LLC.

Crude oil prices topping $100/bbl “have incentivized more rigs, especially from private companies, and the diminishing inventory of DUCs means more drilling is necessary just to maintain levels of production,” said ESAI upstream analyst Elisabeth Murphy.

According to the latest U.S. Energy Information Administration (EIA) Drilling Productivity Report (DPR), the Lower 48 DUC count dropped by 46 units to 4,249 from April to May.

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