Upstream Texas - Fall/Winter 2017 - 10
FE ATU RE
U.S. OIL AND GAS
By Bernadette Johnson,
VICE PRESIDENT OF MARKET INTELLIGENCE FOR DRILLINGINFO
FOLLOWING YEARS OF SUPPRESSED
market conditions, many see 2017 as the
comeback year for the U.S. oil and gas industry.
In wake of the crude price collapse in 2014,
U.S. production for both crude and natural
gas flattened, then dropped through 2016.
And even though prices for crude continue to
hover around $50 per barrel, U.S. producers
have tightened their belts and reemerged with
lower breakevens, more efficient operations,
and wells that are bigger than ever. As a result,
Drillinginfo is forecasting dramatic growth
through 2017, into 2018 and beyond.
Drillinginfo tracks 68 of the most important
operators across U.S. unconventional
plays. Specifically, the company follows
their CAPEX plans, operational trends
(such as drilling and completion costs),
lease operating expenses, and merger,
acquisition and divestiture (A&D) activity.
This information is paired with Drillinginfo's
detailed production and type-curve data
to generate short-term volume forecasts.
These forecasts represent the company's
best outlook for production through the end
UPSTREAM TEXAS F A L L | W I N T E R 2 0 17-2 0 18
Total U.S. crude production is currently
forecasted to grow 988,000 barrels per day
(bbl/d) between December 2016 and December
2017, and another 633,000 bbl/d by December
2018. Meanwhile, gross natural gas production
is forecasted to grow 4.88 billion cubic feet
per day (Bcf/d) between December 2016 and
December 2017, and another 2.89 Bcf/d by
the end of 2018.
The dramatic increase in production is a result
of a sharp increase in rig activity, shorter
drill times, bigger wells, and relatively low