Issue: February 2022


ShaleTech: Free cash flow overrides excessive gas flow

A major artic blast came with the new year across the Eastern United States, leading to a spike in natural gas prices on top of already multi-year highs in a volatile market. For now, most producers in the Marcellus and Utica shales across the Pennsylvania, West Virginia and Ohio fairway are refraining from exponential drilling and production growth.

Electrifying offshore oil and gas production

Long an industry challenge, the electrification of offshore infrastructure enables use of renewable power and simultaneously creates a natural path to digitalization and further environmental impact reduction. This paves the way for the reinvention of offshore oil and gas production.

Regional report: Brazil – weathering the pandemic

Considering its wobbly production, Brazil is doing pretty well in weathering the pandemic. Results of the rescheduled 17th Bidding Round for exploratory acreage were termed successful, although only five of 92 offered blocks were sold.

Drilling Technology: Simple solution rapidly recovers stuck drillstring in remote well

A simple stuck pipe solution improves safety and saves drilling operations days or weeks of NPT.

Upgrade your facility tech to improve maintenance and worker safety

Digital transformation can help combat climate change impact on oil and gas facilities and workers, but the industry has been slow to adapt. In a tech-based future, companies need to invest in digital options like WiFi boosting, drone technology, and remote inspections.

Drilling technology: Autonomous drilling comes to life

Research to enable a fully autonomous BHA is proceeding. Development of a virtual test system enables operators to simulate trajectory automation and control by conducting a virtual field test. The technology increases ROP, improves drilling efficiency, and minimizes tortuosity and deviation from the plan.
Special Focus

2022 Forecast: U.S. crude output falls slightly, natural gas rises

U.S. oil production decreased mildly during 2021. A surge in gas prices during 2021 was influenced by increased demand despite Omicron and geopolitical unrest in Europe.

2022 Forecast: U.S. operators respond cautiously to higher crude prices

The average U.S. rig count for 2021 increased almost 9% from the previous year, though companies remained cautious with ramping up drilling activity.

2022 Forecast: Positives try to outweigh the negatives in Canada’s upstream

As the global economy recovers from the pandemic, indicators have shifted to a positive outlook for the first time in many years. But politics, especially in Canada, have cast a pall over any potential turnaround for the Canadian industry.

2022 Forecast: Oil and gas in the crosshairs

The upstream industry must play a defensive holding action until the U.S. mid-term elections.

2022 Forecast: Global capex growth to accelerate

Worldwide E&P spending is set to increase 16% in 2022, extending the 5.5% growth experienced in 2021. The first coordinated global upturn since 2018 will be led by North America, but ambitious capacity growth targets in the Middle East, Latin America and Africa will drive international capex gains.

2022 Forecast: U.S. activity to jump as oil prices surge, companies adjust to energy transition

Despite higher oil prices, U.S. shale operators have (until recently) resisted ramping-up drilling activity and remained disciplined with capital expenditures.

2022 Forecast: Activity outside North America will lead global recovery

Every region will post an increase, led by the Middle East, the Americas, Africa and the FSU. Offshore activity will grow at about the same pace as onshore drilling.

2022 Forecast: U.S. proved reserves drop sharply

Operators revised their proved reserves downward in 2020 and postponed development drilling.

Executive Viewpoint: Decarbonization efforts can attract a more diverse workforce in the energy industry

Research shows that a pledge to limit rising temperatures and combat climate change can also positively affect recruitment efforts, especially among women in the workforce.

First Oil: What a difference a year makes

While last year Covid seemed to be withering away, this year Covid is still around but definitely on the decline. Spot prices are high enough for everyone to make a profit, and then some, averaging lately in the high $80s to low $90s (perhaps too high).

Oil and gas in the capitals: The new realities of energy markets

The year 2021 witnessed unprecedented development in the energy markets. Such events were contrary to conventional wisdom and have ramifications for the oil markets, for years to come.

The ESG perspective: Sustainable natural gas?

Opponents of the European Commission's move to label nuclear energy and natural gas as “green" have accused them of "greenwashing." Let’s dig into the importance of this move and why this is a battle we can’t lose.

The last barrel: The Trifecta for U.S. gas producers

The abundant supply of natural gas in the U.S is starting to pay dividends, in spades. The U.S. became the world’s number-one exporter of liquefied natural gas for the first time ever in December.

What’s new in production: Flow assurance

I guess it goes without saying that the oil and gas industry depends a great deal on fluids flowing from one location to the next, to be captured, processed, or otherwise monetized. Sounds simple, yes? Well, it turns out—not so much.

Industry at a glance

Tensions between Russia and Ukraine, combined with surging demand, caused oil prices to increase approximately 20% this year, with WTI and Brent hitting $90.61/bbl and $96.43/bbl, respectively, in February.
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