September 14, 2024
The average 30-day initial productivity (Bbl/d) for new wells drilled in 2023 for major US Lower 48 oil basins. The IP is a measure of production at the start of a wells operation and is typically lower than the wells peak production, which occurs as the pressure builds in the wellbore. After production peaks, it declines rapidly as the quantity of oil and pressure decreases.
The Permian Delaware formation had the highest IP of all US oil basins at almost 1,200 Bbl/d in 2023. It was followed closely by the Williston basin at just over 1,000 Bbl/d and Uinta at just under 1,000 Bbl/d. The remainder of the basins drop from about 900 Bbl/d (Appalachian) to a low of just 65 (California).
Generally speaking, producers focus drilling efforts in a area of a basin that has the best potential production, commonly referred to as the ‘sweet spot’. As such, the IP in each basin is expected to decline going forward as producers move away from wells with the highest IPs to lower producing wells. within the basin.