Upstream Texas - Fall/Winter 2017 - 11

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drilling and completion costs. As tracked by
Drillinginfo's Rig Analytics, at the start of
September the rig count stood at 1,056, up
from the low of 433 rigs observed in May 2016.

Global Crude Prices
The growth of U.S. production is also a key
driver of global crude prices. Expected to be
the marginal supplier going forward, U.S. basin
breakevens will establish global prices.
U.S. breakevens, adjusted for quality and
transportation costs, range between $25/barrel

and $100+/barrel, but $50 West Texas
Intermediate (WTI) is a key price threshold
that allows U.S. production to grow. At $60
WTI, the U.S. can increase domestic crude
production by over 700,000 bbl/d. As a result
of these key price thresholds, combined with
trends in demand and storage levels globally,
Drillinginfo is currently forecasting WTI prices
to average $52 through 2018.
Regarding natural gas prices, Drillinginfo is
forecasting an average of $3.15 for Henry Hub
Prices in 2018. This price is a result of detailed

knowledge available to analysts on supply,
and demand forecasts by sector for power
generation, industrial end uses, residential/
commercial load, exports to Mexico, and
LNG exports.

Beyond 2018
Looking beyond 2018, U.S. production
breakevens, plentiful supply, and short
cycle response times will keep both crude
and natural gas prices range bound for the
foreseeable future. Specifically, the U.S. oil
and gas industry's ability to produce a lot of

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Table of Contents for the Digital Edition of Upstream Texas - Fall/Winter 2017

Chairman’s Message
President’s Message
Texas Takes the Lead on Seismicity Research
U.S. Oil and Gas Production and Price Outlook
Special Infographic
Legislative Profile: Texas State Representative Brooks Landgraf
Regulatory Profile: Texas Water Development Board Chairman Bech Bruun
Member Profile: Parsley Energy CEO, Bryan Sheffield
New Members
Advertiser Index
Calendar of Events
Upstream Texas - Fall/Winter 2017 - Intro
Upstream Texas - Fall/Winter 2017 - cover1
Upstream Texas - Fall/Winter 2017 - cover2
Upstream Texas - Fall/Winter 2017 - 3
Upstream Texas - Fall/Winter 2017 - 4
Upstream Texas - Fall/Winter 2017 - 5
Upstream Texas - Fall/Winter 2017 - Chairman’s Message
Upstream Texas - Fall/Winter 2017 - President’s Message
Upstream Texas - Fall/Winter 2017 - Texas Takes the Lead on Seismicity Research
Upstream Texas - Fall/Winter 2017 - 9
Upstream Texas - Fall/Winter 2017 - U.S. Oil and Gas Production and Price Outlook
Upstream Texas - Fall/Winter 2017 - 11
Upstream Texas - Fall/Winter 2017 - 12
Upstream Texas - Fall/Winter 2017 - Special Infographic
Upstream Texas - Fall/Winter 2017 - Legislative Profile: Texas State Representative Brooks Landgraf
Upstream Texas - Fall/Winter 2017 - Regulatory Profile: Texas Water Development Board Chairman Bech Bruun
Upstream Texas - Fall/Winter 2017 - Member Profile: Parsley Energy CEO, Bryan Sheffield
Upstream Texas - Fall/Winter 2017 - New Members
Upstream Texas - Fall/Winter 2017 - Calendar of Events
Upstream Texas - Fall/Winter 2017 - cover3
Upstream Texas - Fall/Winter 2017 - cover4
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