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The standard for progress in shale development has been the drastic reduction in the number of days needed to drill a well, from more than 20 to less than 5 in some unconventional plays. But some question whether it has become a misleading metric for an industry needing more productive wells. The only wells that are straight or follow a smooth curve are in the pictures in well plans. Real wellbores are shaped by the mechanics of directional drilling tools, the skills and attention of drillers, the force of gravity, and the path followed by hydrocarbon-rich seams of rock.
Surplus production in the oil markets is likely to grow in 2017, and long-term oil prices will track with costs and not revert to the margin-inflated patterns of the shale boom. Surplus production in the oil markets is likely to grow in 2017, and long-term oil prices will track with costs and not revert to the margin-inflated patterns of the shale boom. A fairly stable set of conditions coalesce to make a strong reason to expect the oil price to range between USD 30/bbl to USD 60/bbl for the foreseeable future.
Upward momentum in US industry operations continues to gather, as the survey conducted by the Federal Reserve for the just-completed fourth quarter of 2017 indicates. Drilling activity in US shale plays is slowing as operators encounter higher prices for labor, equipment, and services, and lower prices for the oil and gas produced.
With their gee-whiz—albeit artificial—intelligence, robots may be the industry’s answer to jobs deemed dangerous, dirty, distant, or dull. Drilling activity in US shale plays is slowing as operators encounter higher prices for labor, equipment, and services, and lower prices for the oil and gas produced. Optimization of maintenance costs is among operators’ main concerns in the search for operational efficiency, safety, and asset availability. The ability to predict critical failures emerges as a key factor, especially when reducing logistics costs is mandatory.
Unconventional development has made it clear to Erdal Ozkan that conventional theory overlooks a lot of potentially productive rock. He talks about looking for ways to do better as part of JPT’s tech director report. Completion engineers feel pressure to maximize production per acre and minimize the downsides of fracturing in tight spaces. Terry Palisch, talks about promoting knowledge sharing as part of JPT’s tech director report. Though crude prices are rising, US shale producers face questions over whether their improving oil production results and cost efficiencies will last as increasing drilling activity drives demand for oilfield services.
Hamm, who has served as CEO since founding Continental in 1967, will become executive chairman effective 1 January. Share prices have plunged for seemingly every major US shale producer, with Concho, Pioneer, and Continental among those receiving the worst of the market’s fury. Have investors completely lost faith in the industry? And are shale executives any more optimistic?
In 2013, as deepwater projects become increasingly capital intensive, there are economic challenges for exploration and production (E&P) companies and a potential prize for international oilfield service and equipment vendors. Deepwater represents a long-term opportunity. Expenditures for deepwater projects are expected to rise by 90% over the next 5 years. Drilling and completion of subsea wells will dominate deepwater spending. Higher oil prices are supporting the development of deepwater prospects to contribute to world energy supplies.
Emerson will increase its foothold in the oil and gas industry with the purchase of software maker Paradigm. As the GE-Baker Hughes deal moves closer to finalization we now know who will be leading the combined company. The offshore drilling sector has taken a step towards consolidating an oversupplied market and Ensco will emerge from this most recent deal as the owner of the largest combined fleet of floaters and jackups. A Houston-based energy consultancy concludes that a series of downturn deals have contributed more to the resiliency of the US shale sector than a rise in oil prices.
Analysts at Rystad Energy, an oil and gas consulting and business intelligence data firm, anticipate a strong year ahead for North American shale oil producers. The global oil industry is positioned for stronger performance, reflecting the financial discipline and cost-cutting innovation driven by several years of low oil prices and the likely prospect of more stable market conditions. The global oil industry is positioned for stronger performance, reflecting the financial discipline and cost-cutting innovation driven by several years of low oil prices and the likely prospect of more stable market conditions.