Dear Reader,
The last thing you need right now is another dreary recitation of industry statistics that show how hard-hit the global oil and gas industry has been in the last 18 months. So, I will spare you the gory details.
The fact is that amazing new technologies over the last two decades have produced a glut of both oil and natural gas. Shale technology, deepwater developments to 3,000 m of water, and new technologies applied to conventional reservoirs, have created a supply of more oil and gas today than the world consumes. The term, “peak oil,” has a whole new meaning in 2016: Our global production hit approximately 94 MMbopd (including NGLs) in January of this year.
Recently, we have seen a time of massive dislocation in the industry, with lay-offs, a scaling back of capital investment that is unprecedented in percentage terms, and an existential scramble to lower costs. But, out of such a time of turmoil, come many opportunities.
For the industry, it means that we will emerge leaner, meaner, and more profitable. To lower costs, operators will adapt new technologies to make E&P much more efficient, including the widespread application of data analytics, which is new and very exciting. Vendors and equipment-makers are working on standardization and their supply chains, all of which is good for the industry.
For Gulf Publishing Company, publisher of World Oil, we have had the opportunity to buy the company from the previous owners. During our 100th Anniversary year, we are now an independent company with headquarters in Houston, and offices in Houston and London. Our global media brands cover the entire market: World Oil for the upstream sector; Hydrocarbon Processing serving the downstream; Gas Processing in the midstream; and Petroleum Economist for business and strategy of the industry.
World Oil is well known for its forecasts of drilling activity, presented in the February and August issues. Over the years, our editors’ forecasts have proved to be very accurate in projecting activities, country by country, as well as state by state in the U.S., and province by province in Canada. As you know, a lot of forecasters have not fared well over the last few years.
Nevertheless, we at the new Gulf Publishing Company make the following forecasts, which you can count on:
- The world’s demand will continue to grow for oil and natural gas, and the industry will continue to produce, transport, and process hydrocarbons in ever more efficient and safe ways.
- The industry will return to profitability and growth.
- New technologies will be developed, and applied, to increase efficiencies.
World Oil will serve the industry for decades to come with the latest advances in technology and best practices, and will lead the industry in providing executive management, engineering management, and operating management with information that will help oil and gas professionals do their jobs better.
So, dear reader, we thank you for your devotion to World Oil. As I travel around the world, it is always very gratifying to hear from readers about the publication, the website and our newsletters, and how the information is interesting, but more importantly, beneficial in their work. I also thank all of the advertisers who support this publication. During this, our 100th Anniversary year, I invite you to dive into World Oil and Worldoil.com. And let us know what you think. After all, our objective has been, and will continue to be, to help you do your job better.
John Royall
President/Chief Executive Officer
Gulf Publishing Company
