From TPH: "While we continue to feel comfortable with our 2016 exit rate on oil production of 8.4-8.5mbopd (EIA July 8.69) we do believe there may be near term downside risk to our 1H'17 estimates (TPHe ~8.5mbopd) as operators have been slow to add back horizontal rigs outside the Permian and STACK (trending in-line vs. TPHe). The Eagle Ford and Bakken, however, are well behind our 2017 model with current spot rig count at 60 vs. TPHe 140. DUCs will help supplant rig count over the next twelve months and we feel comfortable that the Bakken may catch up to drilling expectations with recent crude strength, but less-so re: the Eagle Ford as operators pull cash from the basin to finance growth elsewhere."
Keep in mind that OPEC cannot meet global demand for oil on their own. U.S. oil production must increase to meet demand beyond 2017.
U.S. Oil Production
U.S. Oil Production
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: U.S. Oil Production
Estimated oil wells drilled and completed in the third quarter of 2016 remained relatively unchanged from the previous quarter at 2,285. That is a decline of 3.7%, which follows an average of 17.3% in quarterly declines for the past year and a half.
“Today’s report shows evidence that the consistent decline in oil and natural gas drilling could be coming to an end,” said Hazem Arafa, director of the American Petroleum Institute’s statistics department in a press release.
“Today’s report shows evidence that the consistent decline in oil and natural gas drilling could be coming to an end,” said Hazem Arafa, director of the American Petroleum Institute’s statistics department in a press release.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group