• Contact Us
  • About
  • Advertise
  • Privacy & Policy
Thursday, May 15, 2025
  • Login
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
44
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

Shell Commends Oloibiri Lecture Series As Platform  For Change
OIL & ENERGY

Shell Commends Oloibiri Lecture Series As Platform  For Change

April 15, 2025
Tinubu Sacks Kyari And Board Appoints New Chairman, CEO  
OIL & ENERGY

Tinubu Sacks Kyari And Board Appoints New Chairman, CEO  

April 2, 2025
Infrastructure Key to Developing Nigeria’s Gas Resources – Shell
OIL & ENERGY

Infrastructure Key to Developing Nigeria’s Gas Resources – Shell

March 5, 2025
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
Loss Adjusters Receive Charge To Match Speed Of New Developments

Loss Adjusters Receive Charge To Match Speed Of New Developments

April 27, 2024
tope smart NIA former chairman

Insurance Milestone: A Beacon To Follow

April 3, 2022
Custodian Investment To Acquire 51% Stake In UACN Property

Penetration: Operators Call For Insurance-In-Action

November 2, 2022
NCRIB And Universal In Pictures

NCRIB And Universal In Pictures

May 4, 2024
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
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
Linkage Assurance Aligns With Brokers For Growth

Linkage Assurance Aligns With Brokers For Growth

December 6, 2021
PTAD Wipes 21,227 Parastatals Pensioners From Payroll

PTAD Wipes 21,227 Parastatals Pensioners From Payroll

January 31, 2021
Preferred PenCom Logo

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

May 4, 2025
Anchor MD Loses Father

Anchor MD Loses Father

2
Regulators Clear Guinea Insurance  For Private Placement

Regulators Clear Guinea Insurance For Private Placement

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 Head office

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

2
Authenticity Of Motor Policy, Technology Crowns Policyholders Verifying Partners

Authenticity Of Motor Policy, Technology Crowns Policyholders Verifying Partners

2
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
Loss Adjusters Receive Charge To Match Speed Of New Developments

Loss Adjusters Receive Charge To Match Speed Of New Developments

2
NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

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

2
emPLE Partners LASPARK to Create And Sustain Green Lagos

emPLE Partners LASPARK to Create And Sustain Green Lagos

May 15, 2025
Public, Buildings Under Construction Joint Committee Insurance Pushes For Database For Underwriting Ease

Public, Buildings Under Construction Joint Committee Insurance Pushes For Database For Underwriting Ease

May 14, 2025
Compulsory Insurance: Quantity Surveyors Come Onboard NAICOM Platform For Integrated Insurance

Compulsory Insurance: Quantity Surveyors Come Onboard NAICOM Platform For Integrated Insurance

May 14, 2025
Sovereign Trust Steams Ahead With Continuous Manpower Development, Focus Optimal Risk Management

Sovereign Trust Steams Ahead With Continuous Manpower Development, Focus Optimal Risk Management

May 12, 2025
Insurance Industry Surrounds Aviation Risks as NAICOM Unveils Landmark Regulation For Leased Aircrafts,

Insurance Industry Surrounds Aviation Risks as NAICOM Unveils Landmark Regulation For Leased Aircrafts,

May 12, 2025
Sovereign Trust Steadily Pushes Insurance as Unbroken Membrane From Early Life, Makes Igbobi College Students Signpost

Sovereign Trust Steadily Pushes Insurance as Unbroken Membrane From Early Life, Makes Igbobi College Students Signpost

May 11, 2025
Cassava Microinsurance Makes High Net-worth Presence at Retirement Summit

Cassava Microinsurance Makes High Net-worth Presence at Retirement Summit

May 11, 2025
PenCom Lauds Lagos Lead in CPS Implementation, Wants Periodic Pension Raises Extended to CPS Retirees

PenCom Lauds Lagos Lead in CPS Implementation, Wants Periodic Pension Raises Extended to CPS Retirees

May 8, 2025
Global Federation of Insurance Associations Creates Off-limits in Insurance Regulation

Global Federation of Insurance Associations Creates Off-limits in Insurance Regulation

May 7, 2025
Outstanding Sales Champions Fly High at Sanlam Annual Awards

Outstanding Sales Champions Fly High at Sanlam Annual Awards

May 3, 2025
ADVERTISEMENT

Recent News

emPLE Partners LASPARK to Create And Sustain Green Lagos

emPLE Partners LASPARK to Create And Sustain Green Lagos

May 15, 2025
Public, Buildings Under Construction Joint Committee Insurance Pushes For Database For Underwriting Ease

Public, Buildings Under Construction Joint Committee Insurance Pushes For Database For Underwriting Ease

May 14, 2025
Compulsory Insurance: Quantity Surveyors Come Onboard NAICOM Platform For Integrated Insurance

Compulsory Insurance: Quantity Surveyors Come Onboard NAICOM Platform For Integrated Insurance

May 14, 2025
Sovereign Trust Steams Ahead With Continuous Manpower Development, Focus Optimal Risk Management

Sovereign Trust Steams Ahead With Continuous Manpower Development, Focus Optimal Risk Management

May 12, 2025
Insurance Industry Surrounds Aviation Risks as NAICOM Unveils Landmark Regulation For Leased Aircrafts,

Insurance Industry Surrounds Aviation Risks as NAICOM Unveils Landmark Regulation For Leased Aircrafts,

May 12, 2025
Sovereign Trust Steadily Pushes Insurance as Unbroken Membrane From Early Life, Makes Igbobi College Students Signpost

Sovereign Trust Steadily Pushes Insurance as Unbroken Membrane From Early Life, Makes Igbobi College Students Signpost

May 11, 2025
Cassava Microinsurance Makes High Net-worth Presence at Retirement Summit

Cassava Microinsurance Makes High Net-worth Presence at Retirement Summit

May 11, 2025
PenCom Lauds Lagos Lead in CPS Implementation, Wants Periodic Pension Raises Extended to CPS Retirees

PenCom Lauds Lagos Lead in CPS Implementation, Wants Periodic Pension Raises Extended to CPS Retirees

May 8, 2025
Global Federation of Insurance Associations Creates Off-limits in Insurance Regulation

Global Federation of Insurance Associations Creates Off-limits in Insurance Regulation

May 7, 2025
Outstanding Sales Champions Fly High at Sanlam Annual Awards

Outstanding Sales Champions Fly High at Sanlam Annual Awards

May 3, 2025
emPLE Unveils BETA Life: A Three-in-One Endowment Plan for Smarter Savings And Protection

emPLE Unveils BETA Life: A Three-in-One Endowment Plan for Smarter Savings And Protection

April 30, 2025
Half Year Claims Obligation, Sovereign Trust Pays N1.6bn

Soyinka lauds Nigerian Workers on May Day

April 30, 2025
NIA’ Fast Track, Transparent Claims Payment Collaboration With Fintech Gets Insurance Meets Tech (IMT) Endorsement

NIA’ Fast Track, Transparent Claims Payment Collaboration With Fintech Gets Insurance Meets Tech (IMT) Endorsement

May 3, 2025
Combatant PenCom Upholds Journalists Dignity, Moves to Recover N1.3bn Unpaid Pension Contributions From Media Organisations

Combatant PenCom Upholds Journalists Dignity, Moves to Recover N1.3bn Unpaid Pension Contributions From Media Organisations

April 29, 2025
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
  • Uncategorized

Recent News

emPLE Partners LASPARK to Create And Sustain Green Lagos

emPLE Partners LASPARK to Create And Sustain Green Lagos

May 15, 2025
Public, Buildings Under Construction Joint Committee Insurance Pushes For Database For Underwriting Ease

Public, Buildings Under Construction Joint Committee Insurance Pushes For Database For Underwriting Ease

May 14, 2025
  • 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