Operators ride the crest of the global wave
These are plentiful times for the worldwide upstream industry. Last year, for the first time in more than two decades, the global drilling effort exceeded 100,000 wells. Although this year will be up only slightly, it will be another superlative, 100,000-plus performance in the total wells column. Furthermore, worldwide oil and condensate output squeezed out a minor gain, while global oil and gas reserves eased higher. For most of the summer of 2007, futures crude prices have traded relatively high, in a range of $65/bbl to $74/bbl, spurred by a consistently strong world economy, particularly outside the US. Oil prices remain overly sensitive to weather and military/security issues, demonstrating significant volatility on an increasingly daily basis. Healthy prices coupled with high production rates are yielding nice profits for most operators, who have plowed much of that money back into new drilling. Yet, there may be some storm clouds on the horizon.
Please Log IN view this article.
Not yet a subscriber? For just $149/year, you can claim unlimited access to World Oil's content.*
Each subscription includes:
- Unlimited access to all content on WorldOil.com
- Exclusive drilling forecast data, by state, country and region
- State-by-state results from the survey of U.S. operators
- Updated producing oil and gas well figures, by state
- Exclusive access to World Oil's conference presentations
- Proprietary data tables covering casing, tubing, drill bits and fluids
- Exclusive World Oil maps (published three times per year)
- Daily coverage of industry news and developments\
- Industry whitepapers, webcasts, videos and supplements.