Industry at a glance Oil and Gas Prices and Production and Rig Counts
Despite an extreme reduction in worldwide drilling activity during 2015, both WTI and Brent dropped below $30/bbl briefly in mid-January. The market-share battle being waged by Saudi Arabia and Russia shows no sign of abating, with both countries continuing to produce at record-high levels. Also, wells in the large U.S. shale plays are proving more resilient than expected, adding to oversupply. Global oil capabilities expanded by 2.6 MMbpd in 2015, following a gain of 2.4 MMbpd in 2014. The slowing global economy has reduced demand, with growth in 2016 predicted at 1.2 MMbopd. International drilling activity posted a 12-rig gain, as Saudi Arabia became the most active country outside North America. The U.S. rig count average dropped 8% in January, to 656 rigs.