US shale producers are postponing well completions to conserve cash and defer production until prices recover, says John Kemp.
John Kemp is a Reuters market analyst. The views expressed are his own
LONDON, Feb 20 (Reuters) - EOG Resources became the latest major shale producer to state that it would "delay a significant number of completions" when it announced fourth-quarter results.
The company plans to end 2015 with 285 wells awaiting completion services, up from 200 at the end of 2014, it told investors during an earnings call on Thursday.
Continental Resources has also announced plans to go slow on well completions in response to the slump in oil prices.
Apache and Anadarko Petroleum are among other shale producers to announce a deliberate strategy of delaying completions.
U.S. shale producers are postponing well completions to conserve cash and defer production until prices recover.
There are a large number of wells that have been drilled but are awaiting the arrival of pressure pumping crews to fracture them and service companies to link them up to gathering pipelines.
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