Three key insights:
- The impact of demand destruction and oversupply resulting in negative oil prices was realized in April when western Canadian operators began to shut-in oil production. Oil production fell to 2.144 million bbls/d in April, a 22 per cent or 591,000-bbl/d reduction from December levels of 2.736 million bbls/d.
- There were around 9,100 fewer wells producing in April compared to December as companies attempted to protect future revenues by suspending production from higher producing wells. There were 322 fewer wells producing over 500 bbls/d, but these accounted for 57 per cent or 339,000 bbls/d of the shut-in volumes.
- Wells producing under 20 bbls/d accounted for 63 per cent of the number of wells shut in, however they produced just 10 per cent of overall shut-in volumes. The sheer number of these wells being shut-in suggests they were still a focus for companies looking for cost savings.
Source: CanOils Assets