Industry at a Glance

OPEC agreed to extend its output cuts for another nine months. Libya and Nigeria, which have boosted output since January, will continue to be exempt from the arrangement.

Craig Fleming / World Oil

OPEC agreed to extend its output cuts for another nine months. Libya and Nigeria, which have boosted output since January, will continue to be exempt from the arrangement. Although Russian President Putin met with Saudi Arabia’s Prince Mohammed bin Salman after the deal, it was unclear whether Russia intends to participate in further output restrictions, which total 300,000 bpd. The Saudis also plan to reduce crude shipments to the U.S. by 210,000 bpd, pushing exports below the 1-MMbpd mark. The intent is to shrink the highly-visible stash of reserves stockpiled in the U.S. Benchmarks dipped slightly, but hovered in the $47–$50/bbl range after the cartel announced its plan. U.S. rig activity in May averaged 893 units, 40 more than April, a 5% increase. The international count dropped 121 rigs, down to 1,074, due mainly to Canada’s spring thaw.

U.S. GAS PRICES ($/MCF) AND PRODUCTION (BCFD) GRAPH

U.S. ROTARY DRILLING RIGS GRAPH

U.S. ROTARY DRILLING RIGS TABLE

U.S. DRILLED BUT UNCOMPLETED WELLS

U.S. OIL PRODUCTION TABLE

WORLD CRUDE OIL PRODUCTION, TOP THREE PRODUCERS

WORLD OIL PRODUCTION TABLE

SELECTED WORLD OIL PRICES GRAPH

INTERNATIONAL ROTARY RIG GRAPH

INTERNATIONAL ROTARY RIG TABLE

INTERNATIONAL OFFSHORE RIGS TABLE

About the Authors

Craig Fleming

World Oil

Craig Fleming Craig.Fleming@WorldOil.com

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