Industry at a glance

	Vol. 225 No. 5

In February, OPEC spoke of returning oil back to the $25-28/bbl basket of prices. However, West Texas Intermediate (WTI) has been trading on the New York Mercantile at around $35/bbl. OPEC's decision to cut output seems calculated to keep prices high. WTI prices have risen $5 to $6/bbl from last November. EIA predicts OPEC will cut production by about 1.5 MMbopd, “a significantly smaller cut than implied by a literal reading of OPEC's March 31 announcement.”

US oil production remained relatively unchanged from last month, largely attributed to 4% and 5% increases in Louisiana and Alaska respectively, even though most states declined slightly, and Texas output dropped 3.2%. International geophysical activity is down 23% from this time last year, reflecting the reluctance of some majors to spend capital on exploration. US and Canadian drilling remain well ahead of year-ago levels. Worldwide, contracted offshore rigs are steady.