Forecast ///
Dr. Anas Alhajji, Contributing Editor
Making the case for a Saudi oil production cut
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.
Kurt Abraham, World Oil
Low oil prices are constricting drilling activity worldwide with a couple of exceptions. Meanwhile, production and reserve levels have gained, spurred by last year’s stout drilling effort.
Mauro Nogarin, Contributing Editor
Less than a year after the enactment of Mexico’s new energy reform law, which was promulgated in June 2014, the Director General of national oil company Pemex, Emilio Lozaya, announced significant new oil and gas discoveries in the country.
Robert Curran, Contributing Editor
In response to the prolonged oil slump, operators have slashed spending, postponed large-scale projects and laid off staff. Canada’s industry associations have downgraded their 2015 forecasts, as well.
Kurt Abraham, World Oil
Although this year’s major upstream downturn is inflicting considerable pain on producers and equipment/service companies, alike, it also is stimulating additional technical creativity and progress across all disciplines of the North American industry.
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.
Kurt Abraham, World Oil; Robert Curran, Mauro Nogarin, Contributing Editor
Despite a variety of interfering factors, U.S. activity remains at a high level, aided by the industry’s technical and efficiency gains. Canada continues to slowly rebound on the strength of oil activity, while Mexico remains at a lower level.
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.