Home / 2017 / November/December (page 3)


No quick recovery in the cards for 2018

Most forecasts call for oil prices to stay within the $45-$55 range next year as global oil production stays high despite OPEC’s agreed cuts By Linda Hsieh, Managing Editor Stability, not a quick recovery, may be where the drilling industry has to turn for comfort in 2018. Oil prices, which will likely average around $50 this year, are mostly forecast to stay within the $45 to $55 range next year. It isn’t until at least the second half of 2018 or perhaps 2019 that some upward price pressures may enter the market. Oil inventories, global energy consumption and OPEC’s decision on whether to extend its production cuts beyond March 2018 are all being closely watched. For the drilling sector specifically, ...

Read More »

Deepwater drilling segment reaches nadir in 2017, may see beginnings of a steady recovery in 2018

As the deepwater drilling industry looks toward 2018 and beyond, here’s the silver lining: The worst is likely over. Conditions are still difficult, with few work opportunities available for the large supply of deepwater rigs worldwide. However, companies can take some comfort in the fact that things appear to be on the mend, if slowly. “We believe 2017 does actually represent the nadir of activity in deepwater wells drilled,” said Ben Wilby, an analyst with Westwood Global Energy Group. “It increases next year and then increases steadily for the foreseeable future.” This means rig utilization will also see a slow and steady increase beginning in 2018, although a still-oversupplied rig market is expected to keep dayrates down for the foreseeable future...

Read More »

Operators double down on Permian, seek solutions to operational, downhole and reliability challenges

If the rising rig count has made US shale the brightest spot in the global exploration and production market, then the Permian Basin has been the supernova. Of the 916 rigs working in the US onshore market as of late September, 385 were in the Permian. No other US basin even comes close – the Cana-Woodford in Oklahoma sits in a distant second with only 62 rigs. In fact, the Permian has been a major driver of growth in US oil production since 2010, Joe Wright, Executive Vice President and COO for Concho Resources, said during a panel session at the IADC Shale Energy Workshop in Midland, Texas, on 13 September. He pointed out that US oil production grew by 4 million bbl/day from 2010 to 2017, and 40% of that growth came from the Permian. “You can see that it’s very much been a revolution,” he said...

Read More »

Virtual, augmented reality adoption on the horizon for drilling industry

The technologies of virtual and augmented reality (VR and AR) are increasingly in the news. At the same time, many are wondering how much of this is marketing and whether projects using these cutting-edge formats are providing early adopters a return on their investments. This article will provide an overview on the current status of VR/AR as applicable to the drilling industry...

Read More »