• Contact Us
  • About
  • Advertise
  • Privacy & Policy
Wednesday, October 4, 2023
  • Login
Business Post
E3P Motor Insurance
  • Home
  • Insurance
  • Pension
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
  • Home
  • Insurance
  • Pension
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
No Result
View All Result
Business Post
No Result
View All Result
Home OIL & ENERGY

U.S. Drilling Total For 2020 Will Be Lowest In More Than 80Years

Nwanne Ikemefune by Nwanne Ikemefune
January 31, 2021
in OIL & ENERGY
0 0
0
U.S. Drilling Total For 2020 Will Be Lowest In More Than 80Years
0
SHARES
33
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp

At World Oil, we have finished compiling the 2020 mid-year forecast update for drilling and production. On the drilling side, we now can tell you, our readers, that if this forecast is realized, the U.S. total for the year will definitely be the lowest since before 1940. Indeed, it could go back considerably further than the 1930s. One can see the history of U.S. drilling, as shown in the accompanying chart, all the way back to 1859.

The historical basis. But first, operators will have to drill at a pace lower than those of 1933 and 1931, when well totals of 12,170 and 11,716, respectively, were tallied. The fact that we are looking at a level potentially below these two years—below 11,000 wells—is quite historical, albeit remarkably negative. And consider the fact that just last year, we estimate that somewhat over 22,000 wells were drilled, and in 2018, the number is estimated at approximately 25,000. By the same token, it wasn’t but six years ago, in 2014, that the U.S. well total was 45,535. There has not been an annual total above 30,000 since then.

Trends behind the performance. This year’s trend toward a total that may be below 11,000 should come as no surprise to anyone, who has been following oil market trends since early February. In the seven months that have followed, the U.S. market has been hit by a record, quick, oil demand reduction prompted by the coronavirus pandemic; the Saudi-Russian dispute over production quotas that exacerbated the effect of the demand reduction; operators’ quick response to low prices that ensued, including shutting-in wells and reducing or halting drilling; and a slower-than-expected recovery from the pandemic in the U.S. economy.

Operator responses to low prices and demand. To be more specific about operator activity, World Oil has received dozens of survey responses from producers, which have cut back their drilling from first-quarter 2020 levels, not just substantially but actually quite drastically. A number of companies said that in the second half of the year, they are drilling half, or less than half, of the number of wells that they drilled in the first half. So, imagine that an operator might have drilled 100 wells in the first half and will only drill 40 in the second half. Or maybe a firm drilled 65 wells in the first half and plans only 20 in the second half. These figures are NOT any one company’s actual numbers, but they are representative of the types of data that we have been receiving.

Furthermore, one should remember that 2019 was not the greatest drilling year to begin with, and first-quarter drilling by most operators was roughly on a par with that year’s pace. But since then, drilling has gone off the cliff. There were substantial reductions during second-quarter 2020, including some companies that went on a drilling hiatus. These reductions have been carried through, into the third quarter, with a few that are even deeper than in the second quarter. We expect a mild pick-up in U.S. drilling during the fourth quarter, and our forecast has that expectation baked into it. So, if that pickup does not occur, then the final 2020 number will be even lower, accordingly.

Regional effects. To no one’s surprise, the greatest effects of the drilling trough are being felt in the various U.S. shale plays, such as the Permian, Eagle Ford, Bakken and Niobrara, where oil activity has been dominant. However, while they have experienced double-digit declines in drilling, the gas prone Marcellus, Haynesville and Utica (which does have an oil component) shales have not experienced reductions in the magnitude of the oil-prone plays. And there are a few bright spots in some of the more minor states, where traditional, vertical, sometimes-shallow oil activity is more prevalent and will actually have minor increases.

Source: World Oil
Previous Post

Number Of Private Pension Scheme Subscribers Stays Stable

Next Post

Tullow Reviewing Its Kenya Plans As Stake Sale Falls Through

Nwanne Ikemefune

Nwanne Ikemefune

Related Posts

WEOG Lagos Launches Business Directory Empowering Women in Energy, Oil, and Gas Sector
OIL & ENERGY

WEOG Lagos Launches Business Directory Empowering Women in Energy, Oil, and Gas Sector

September 4, 2023
Energy Market Insurance Pressure Forecast To Ease
OIL & ENERGY

Nigeria Content Board Abhors Objections By Local Oil & Gas Companies To Hire Nigerians

August 15, 2023
Energy Market Insurance Pressure Forecast To Ease
OIL & ENERGY

Energy Market Insurance Pressure Forecast To Ease

April 5, 2023
Next Post
Tullow Reviewing Its Kenya Plans As Stake Sale Falls Through

Tullow Reviewing Its Kenya Plans As Stake Sale Falls Through

Please login to join discussion
NEM INSURANCE NEM INSURANCE NEM INSURANCE
  • Trending
  • Comments
  • Latest
ILAN Picture

Loss Adjusters Receive Charge To Match Speed Of New Developments

September 23, 2023
Custodian Investment To Acquire 51% Stake In UACN Property

Penetration: Operators Call For Insurance-In-Action

November 2, 2022
tope smart NIA former chairman

Insurance Milestone: A Beacon To Follow

April 3, 2022
NCRIB And Universal In Pictures

NCRIB And Universal In Pictures

June 7, 2023
Reinsurance Rates May Increase Into 2022, But Momentum To Wane: Fitch

Reinsurance Rates May Increase Into 2022, But Momentum To Wane: Fitch

April 13, 2021
Linkage Assurance Aligns With Brokers For Growth

Linkage Assurance Aligns With Brokers For Growth

December 6, 2021
ncrib logo

NCRIB Sets The Stage For Adaramola’s Tenure

June 7, 2023
Preferred PenCom Logo

PenCom Board Crafted To Hedge Setback

February 1, 2021
PTAD Wipes 21,227 Parastatals Pensioners From Payroll

PTAD Wipes 21,227 Parastatals Pensioners From Payroll

January 31, 2021
PenCom Approves Mrs Okwuosa New Access Pension Fund Custodian MD

PenCom Board Back-To-Work Pass, Gets Tick Over

February 1, 2021
NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

2
Ebere Nwoji Makes It Back To Back As 2023 Print Media Reporter

Ebere Nwoji Makes It Back To Back As 2023 Print Media Reporter

2
Regulators Clear Guinea Insurance  For Private Placement

Regulators Clear Guinea Insurance For Private Placement

2
Authenticity Of Motor Policy, Technology Crowns Policyholders Verifying Partners

Authenticity Of Motor Policy, Technology Crowns Policyholders Verifying Partners

2
AIICO Head office

Car Insurance Takes A New Turn With AIICO, ETAP ‘Redefine Partnership’

2
NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

Federal Government & NAICOM Working On New Guidelines For Insuring Government Assets

2
NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

NAICOM Inaugurates Discount Rate Committee To Ease Insurance Contracts Under IFRS 17

2
Insurance Mastercard Joe Irukwu Passes On

Insurance Mastercard Joe Irukwu Passes On

2
AIICO Seeks NSE’s Nod To Conduct  Rights Issue

AIICO Seeks NSE’s Nod To Conduct Rights Issue

0
Image Spin: Launch Of Sanlam Nigeria ‘Family Love’ And ‘Code Of Confidence’ The Traction Code

Image Spin: Launch Of Sanlam Nigeria ‘Family Love’ And ‘Code Of Confidence’ The Traction Code

0
Image Spin: Launch Of Sanlam Nigeria ‘Family Love’ And ‘Code Of Confidence’ The Traction Code

Image Spin: Launch Of Sanlam Nigeria ‘Family Love’ And ‘Code Of Confidence’ The Traction Code

October 4, 2023
WHO Announces Approval Of New Malaria Vaccine

WHO Announces Approval Of New Malaria Vaccine

October 2, 2023
Leadway Assurance Leads With ISO/IEC Re-certification

Leadway Assurance Distributes B2B Travel Insurance In Nigeria In Partnership With Tune Protect EMEIA

October 1, 2023
AIICO Knocks Down Insurance Barriers With Its Spiraling Digital Masterpiece

AIICO Knocks Down Insurance Barriers With Its Spiraling Digital Masterpiece

October 1, 2023
AIICO Head office

AIICO Holds Three Dimensional Training: Insurtech, IFRS 17 & MI For NAIPE Corps

September 27, 2023
Dangling Claims Severity And Inflation Pose Global Insurer Cost Challenges- AGCS

Regulator Bidding, Insurance Companies USSD Make Motor Claim A Quick Fix

September 26, 2023
NAICOM Regulation Stirs Clear Of Wild Spin Focuses On Mid-Point With Policyholders And Operators

NAICOM Unlocks Insurance Operations With Open Cast Risk Based System

September 26, 2023
Emir Of Kano Leads Insurance Penetration Urges Nigerians To Embrace

Emir Of Kano Leads Insurance Penetration Urges Nigerians To Embrace

September 19, 2023
Heirs Insurance Group Wins Outstanding Insurance Group of The Year

Heirs Insurance Group Wins Outstanding Insurance Group of The Year

September 19, 2023
Nasarawa Governor Makes Insurance Penetration Easy With Testimony That Insurance Works

Nasarawa Governor Makes Insurance Penetration Easy With Testimony That Insurance Works

September 18, 2023
ADVERTISEMENT

Recent News

Image Spin: Launch Of Sanlam Nigeria ‘Family Love’ And ‘Code Of Confidence’ The Traction Code

Image Spin: Launch Of Sanlam Nigeria ‘Family Love’ And ‘Code Of Confidence’ The Traction Code

October 4, 2023
WHO Announces Approval Of New Malaria Vaccine

WHO Announces Approval Of New Malaria Vaccine

October 2, 2023
Leadway Assurance Leads With ISO/IEC Re-certification

Leadway Assurance Distributes B2B Travel Insurance In Nigeria In Partnership With Tune Protect EMEIA

October 1, 2023
AIICO Knocks Down Insurance Barriers With Its Spiraling Digital Masterpiece

AIICO Knocks Down Insurance Barriers With Its Spiraling Digital Masterpiece

October 1, 2023
AIICO Head office

AIICO Holds Three Dimensional Training: Insurtech, IFRS 17 & MI For NAIPE Corps

September 27, 2023
Dangling Claims Severity And Inflation Pose Global Insurer Cost Challenges- AGCS

Regulator Bidding, Insurance Companies USSD Make Motor Claim A Quick Fix

September 26, 2023
NAICOM Regulation Stirs Clear Of Wild Spin Focuses On Mid-Point With Policyholders And Operators

NAICOM Unlocks Insurance Operations With Open Cast Risk Based System

September 26, 2023
Emir Of Kano Leads Insurance Penetration Urges Nigerians To Embrace

Emir Of Kano Leads Insurance Penetration Urges Nigerians To Embrace

September 19, 2023
Heirs Insurance Group Wins Outstanding Insurance Group of The Year

Heirs Insurance Group Wins Outstanding Insurance Group of The Year

September 19, 2023
Nasarawa Governor Makes Insurance Penetration Easy With Testimony That Insurance Works

Nasarawa Governor Makes Insurance Penetration Easy With Testimony That Insurance Works

September 18, 2023
Image Spin: Insurance, Pension & Stakeholders Bare Minds At NAIPE 8th Confab

Finance Expert Urges Govt To Position Pension & Insurance Sectors For Economic Development With Conducive Policies

September 18, 2023
Benchmark Award: AIICO Receives The Baton Of Insurance Company of the Decade

Benchmark Award: AIICO Receives The Baton Of Insurance Company of the Decade

September 18, 2023
First Less Than An Hour Motor Claim Pay By Sanlam Nigeria Dazzles Customer

First Less Than An Hour Motor Claim Pay By Sanlam Nigeria Dazzles Customer

September 18, 2023
Recyclers Association New Leadership Sets To Birth The Ideal Of Plastic Free Community

Recyclers Association New Leadership Sets To Birth The Ideal Of Plastic Free Community

September 14, 2023
NEM Insurance NEM Insurance NEM Insurance
Business Post

We connect brands with buyers and sellers of insurance, pension and also project insurance and allied Businesses to the trending generation. We help the various public to adapt to the constant changes as it would impact, and also enable advertisers to connect, engage and target opportunities on line , in print and in person.

Browse by Category

  • Business Unlimited
  • Feature
  • Insurance
  • News
  • OIL & ENERGY
  • Pension
  • Travel

Recent News

Image Spin: Launch Of Sanlam Nigeria ‘Family Love’ And ‘Code Of Confidence’ The Traction Code

Image Spin: Launch Of Sanlam Nigeria ‘Family Love’ And ‘Code Of Confidence’ The Traction Code

October 4, 2023
WHO Announces Approval Of New Malaria Vaccine

WHO Announces Approval Of New Malaria Vaccine

October 2, 2023
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 BusinessPost

No Result
View All Result
  • Home
  • Insurance
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
  • Contact Us
  • About
  • Advertise
  • Privacy & Policy

© 2023 BusinessPost

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In