Forecast ///
Dr. Roger Bezdek, Contributing Editor
On his first day as President, Biden recommitted the U.S. to the Paris Climate Agreement, rescinded the construction permit for the Keystone XL oil pipeline, and ordered federal agencies to begin reinstating over 100 environmental regulations rolled back by Trump—including ones governing methane leaks from O&G wells and greenhouse gas (GHG) emissions from vehicle tailpipes.
Staff, World Oil
Improved offshore activity, coupled with significant conventional oil development programs operated by NOCs, should push drilling marginally higher in 2020.
Kurt Abraham, World Oil
Not since 1986 has the global upstream industry seen such a 12-month period of oil price erosion, punctuated by rapid-fire reductions in operator, vendor and contractor activity.
Pramod Kulkarni, Kurt Abraham, Roger Jordan, Steven McGinn, World Oil
An oversupplied market spells a difficult year ahead for operators, although less so for activity outside North America.
David A. Pursell, Brandon Blossman, Tudor, Pickering, Holt & Co.
An $85/bbl oil price outlook is maintained for 2016, as weak oil prices, balance sheets, and significantly reduced drilling activity will create a net, non-OPEC supply decline in 2016. For North American natural gas, it is much the same story—less drilling activity makes for less gas production growth in 2016, and a much tighter market.
James West, Samantha Hoh, Alexander Nuta, Cameron Schnier, Evercore ISI
E&P spending may fall below $700 billion in 2015, as budgets will be dictated by cash flow and access to capital, according to a survey of the spending plans of approximately 300 companies worldwide.
Kurt Abraham, World Oil
The year 2014 has been a period of not only great profitability for the global upstream industry but also a time of considerable volatility.
Kurt Abraham, World Oil
After reaching a plateau last year, worldwide E&P activity is set to resume additional growth, led by a very strong drilling market.
James West, Barclays
Sustained high oil prices, the sanctioning of major projects and the delivery of a large number of offshore rigs, in both 2014 and 2015, are driving the projected increases in international E&P spending.
Dr. Roger Bezdek, Contributing Editor
While a potential Republican takeover of the Senate could benefit upstream oil and gas, a large threat looms in the form of Obama’s massive executive bureaucracy, which vows to bypass Congress.
The global E&P industry is riding the crest of a wave, and nowhere is that more true than in the U.S. For the last three years—and for this fourth year as well—drilling activity has remained in a narrow band of not more than 4,000 wells’ difference.
The average U.S. rotary rig count dropped in 2013 by more than 8%, compared to the previous year.
Crude and condensate. Prices that hovered from the low $90s through $110/bbl throughout the year kept the drill bits turning and the oil flowing in 2013.
The number of producing oil wells in the U.S. rose 3.4% last year.
The number of producing gas wells in the U.S. rose slightly over the course of the last 12 months.
According to the latest data from the U.S. Energy Information Agency, in 2011, U.S. E&P companies saw a 15% increase in proved reserves during 2011, adding nearly 3.8 billion bbl of crude oil and lease condensate.
Staff, World Oil; Mauro Nogarin, Contributing Editor
Though operators expect a good year, most are taking a more careful look at E&P budgets, seeking both improved efficiencies and lower costs.
Robert Curran, Contributing Editor
The outlook remains murky for Canadian producers, but some positive news on pipelines, and a weakening Canadian dollar, bode well for the year ahead.
Sarah French, international oil and gas lawyer
An agreed-upon Joint Plan of Action aims to maintain Iran’s crude oil exports at a flat rate, for an initial, six-month period, and avoids placing additional restrictions on non-domestic purchases.