Industry at a glance

World oil supply fell 400,000 bpd in August to 85.8 million bpd, due to decreased output from Iran, Saudi Arabia and the North Sea. This comes after IEA revised July’s oil supply upward by 730,000 bpd, reflecting higher OPEC, North Sea and FSU output. In September, oil prices hit a five-month low at less than $70/bbl, while gas prices decreased by over 30%. IEA predicts that global crude will become heavier and sweeter between now and 2011. As Argentina faces its ninth year of declining oil production, concerns abound that the country will become a net oil importer. In first-half 2006, Argentina’s oil exports fell 59%. The World Rig Forecast – Short Term Trends predicts that despite new and reactivated rigs joining the fleet, worldwide offshore rig demand will continue to exceed supply over the next year, while current utilization hovers around 93%. Overall US rig count is at its highest level since early 1986.