U.S. GAS UP
The number of rigs in operation, as of May 8, totaled 894, a drop of more than 1,000 since 2014's September 26 peak of 1,930 rigs, according to data from Baker Hughes. Of these, 668 rigs were targeting oil and 221 were targeting gas. As recently as November 2011, there were as many gas rigs active as there are total rigs today, and in August 2008, when shale gas exploration was ramping up, there were 1,606 gas rigs, representing 79% of all rigs deployed nationwide.
Over the past several years, the rig count has fallen, but without reducing production. This has been accomplished largely because of gains in rig efficiency, including improved technology but also the higher quality of the rigs and crews that are still operating (when companies cut back, they start with the least-efficient rigs). In addition, companies are making decisions to focus on their best production opportunities, a tactic called high-grading. More recently, a 49% drop in crude oil prices from June 2014 to April 2015, and a 43% drop in natural gas prices in the same period, has led operators to reduce the number of rigs in use, with a decrease in oil rigs accounting for 90% of the total rig decline. While oil and gas prices have been generally increasing since mid-March and mid-April of 2015, respectively, making up for a portion of earlier declines, they still remain relatively low compared to recent history.
Even with the decline in rigs, U.S. dry natural gas production continued to grow, reaching record highs in December 2014 of more than 74.3 billion cubic feet per day (Bcf/d), and retaining an average production in February 2015 of more than 74.2 Bcf/d, a 10% year-over-year rise from February 2014. EIA projects that dry natural gas production will increase year-over-year by 4.3 Bcf/d (6.0%) in 2015, reflecting continuing production growth in the Lower 48 states. In particular, EIA's Short-Term Energy Outlook expects that most of the growth will come from the Marcellus Shale, as a backlog of drilled wells are completed and new pipelines come online to deliver Marcellus gas to a broader market. Additionally, even with the reduction of active natural gas-targeted rigs, there is a backlog of drilled but uncompleted wells that are positioned to support production, especially as prices recover.
|July, 16, 11:05:00|
|July, 16, 11:00:00|
|July, 16, 10:55:00|
|July, 16, 10:50:00|
|July, 16, 10:45:00|
|July, 16, 10:40:00|
AN - China National Offshore Oil Corp. (CNOOC) is willing to invest $3 billion in its existing oil and gas operation in Nigeria, the Nigerian National Petroleum Corporation (NNPC) said on Sunday following a meeting with the Chinese in Abuja.
REUTERS - Production at Libya’s giant Sharara oil field was expected to fall by at least 160,000 barrels per day (bpd) on Saturday after two staff were abducted in an attack by an unknown group, the National Oil Corporation (NOC) said.
IMF - Output grew by 3.8 percent in 2017, underpinned by a resilient non-hydrocarbon sector, with robust implementation of GCC-funded projects as well as strong activity in the financial, hospitality, and education sectors. The banking system remains stable with large capital buffers. Growth is projected to decelerate over the medium term.
IMF - Higher oil prices and short-term portfolio inflows have provided relief from external and fiscal pressures but the recovery remains challenging. Inflation declined to its lowest level in more than two years. Real GDP expanded by 2 percent in the first quarter of 2018 compared to the first quarter of last year. However, activity in the non-oil non-agricultural sector remains weak as lower purchasing power weighs on consumer demand and as credit risk continues to limit bank lending.