Issue: February 2024

2024 Forecast and Review

Global capex growth is slowing

Worldwide E&P spending is set to increase 5% in 2024, decelerating from 11% in 2023, with the global upturn extending into a third year. North American spending growth should moderate to 2.2% in 2024, following 19% growth in 2023. The majority of spending increases have shifted to international and offshore markets.

U.S. oil and natural gas production hits record highs

Despite a 4.6% reduction in U.S. drilling activity on an average yearly basis, U.S. crude production climbed to an all-time high of 12.93 MMbopd in 2023, an 8.8% increase compared to the 11.88 MMbopd average of 2022. The increased output was augmented by U.S. operators completing a large backlog of DUCs in three major oil shale plays.

Oil and gas industry in for a tumultuous year

The U.S. industry faces formidable challenges. In November 2024, elections for President, the Senate, and the House may change the political landscape to something more favorable. Irrespective, the Biden administration will be in office at least through January 2025, and the next 11 months will be a trying period.

U.S. drilling: More of the same expected

Look for U.S. spending to increase just 2.2% in 2024, and drilling should be flat. Many factors are at play to bring this result.

U.S. producing gas wells increase despite low prices

Active natural gas wells saw a slight increase in the U.S. during 2023 of 0.9%, to 496,756 total wells, compared with 492,197 in 2022. Accordingly, total marketed gas production in the U.S. also saw an increase.

U.S. operators reduce activity as crude prices plunge

Despite escalating tensions in the Middle East, a significant OPEC+ output reduction and the war in Ukraine, crude prices fell in 2023, with WTI down 17.7% to average $77.60/bbl, $16.73/bbl less than the $94.33/bbl average for 2022.

Prices and governmental policies combine to stymie Canadian upstream growth

At one point, 2024 was shaping up to be the Canadian oil patch’s big comeback year. But price volatility and a federal government that singles out fossil fuels in its climate crusade have plunged the industry into greater uncertainty and dimmed hope that Canada might again step to the international hydrocarbons forefront.

E&P outside the U.S. maintains a disciplined pace

As operator spending shifts away from the U.S., six of eight regions will post drilling increases. That being said, some areas—Middle East, Africa and South America—will do better than others, and most gains registered will be modest.

Digital tool kit enhances real-time decision-making to improve drilling efficiency and performance

A new AI-driven solution provides insights that enable rig personnel to act earlier and more confidently, reducing risks and improving well delivery.

Using data to create new completion efficiencies

In the fast-paced world of upstream oil & gas data, innovation and a relentless focus on continual improvement is not a choice but a necessity.

Subsea technology- Corrosion monitoring: From failure to success

The history behind CEM (Corrosion-Erosion Monitor) is a story of how failures can lead to success. Acoustic guided waves were the solution necessary to achieve reliable wall thickness monitoring of pipes.

Executive viewpoint: TRRC opinion: Special interest groups are killing jobs to save their own

We all want clean air and water. We all want to be good stewards of our land and natural resources. And over the last 50 years, America has proven that oil and gas production and a clean environment are not mutually exclusive.

First oil

If you like stability, you’ll love 2024

What's new in production

Water quality and quantity

Oil and gas in the Capitals

Saudi Arabia suspends oil expansion as neighboring producers plan to raise output

Water management

Recent developments with produced water

The last barrel

Wildcat wells netting smaller discoveries
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