Production Development

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  1. BHI: US rig count begins 2017 with 7-unit increase

    The US drilling rig count began the new year with its eighth consecutive weekly rise and 28th increase of the past 32 weeks that comprise the recent drilling rebound. Baker Hughes Inc. ’s tally rose 7 units to 665 during the week ended Jan. 6. The count is up 261 units from a nadir of 404 touched during the weeks of May 20-27, the low point of the drilling downturn and in BHI data that dates back decades. It entered 2016 at 664 rigs working and exited the year having almost fully recovered to that total at 658 ( OGJ Online, Dec. 30, 2016 ). Raymond James & Associates Inc. said in a research note this week that it expects the overall count to continue trending upward through 2017. However, the financial services firm believes the tally will be constrained to around 800 during the year before climbing to about 1,100 in 2018. RJA continues to foresee an equipment bottleneck limiting rig deployment in the near term as demand continues to rise. “Given the pain that has been felt in the sector, the oil service industry may have difficulty keeping pace with [exploration and production] development plans as the recovery cycle develops, particularly in pressure pumping,” it said. “The market could be wholly out of horsepower at 1,000 without a level of newbuilds and refurbished equipment, which may take time to enter the market,” RJA explained. Oil rigs up in 10 straight weeks US oil-directed rigs gained 4 units to 529, up 213 since May 27. That count has risen in 10 straight weeks and only declined once in the past 28 weeks. Gas-directed rigs rose 3 units to 136, up 52 since Aug. 26. One rig considered unclassified remains active. All but one of the 7 units to start work this week were land-based, bringing that total to 640. Rigs engaged in horizontal drilling gained 2 units to 534, up 220 since May 27. Directional drilling rigs edged up a unit to 57. One rig started work offshore Louisiana, lifting the overall US offshore count to 24. One rig remains drilling in inland waters. After ending 2016 with a 67-unit drop a week ago, Canada rebounding to begin 2017 with a 48-unit jump to 205, which is still 169 units higher than where the count stood on May 6. Oil-directed rigs in Canada reclaimed 29 units to total 81. Gas-directed rigs took back 23 units to reach 123—their highest point since Mar. 13, 2015. Four rigs considered unclassified went offline, bringing that tally to 1. Texas-New Mexico rebound hub Among the major oil- and gas-producing states, Texas and New Mexico, both home to the Permian basin, led the way each with 3-unit increases to 327 and 37, respectively. Louisiana was the only other state with a double-digit increase, gaining 2 units to 50. Texas’s count is up 153 units since May 27 while New Mexico’s count has risen 24 units since Mar. 13. The Permian also climbed 3 units and now totals 267, up 133 since May 13. The Haynesville rose 2 units to 29, up 16 since Sept. 30. The Eagle Ford continued its slow rise, edging up a unit to 47, up 18 since June 3. The Granite Wash, meanwhile, dived 5 units to 10. Pennsylvania, Colorado, and Ohio each edged up 1 unit to respective totals of 33, 29, and 20. The Marcellus and Utica each gained 1 unit to 40 and 20, respectively. The two shale gas regions’ counts have doubled during the rebound. Major shale gas producer Antero Resources Corp. said this week that it plans to operate 4 rigs in the Marcellus in West Virginia during 2017 and expects to complete 135 wells with an average lateral length of 9,200 ft ( OGJ Online, Jan. 6, 2017 ). In the Ohio Utica, the firm plans to operate 3 rigs for the year and expects to complete 35 wells with an average lateral length of 9,700 ft. Alaska dropped 1 unit to 8 rigs. Wyoming decreased 2 units to 17. Contact Matt Zborowski at matthewz@ogjonline.com .

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    Fri, 6 Jan 2017

  2. Presalt oil production offshore Brazil reaches milestone

    Petrobras and its partners have produced 1 Bbbl of oil in the presalt layer.

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    Thu, 15 Dec 2016

  3. Geoscience specialist PDF joins EPI

    EPI Group has acquired UK oil and gas geoscience consultancy PDF.

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    Wed, 28 Dec 2016

  4. Production starts at Ivar Aasen field in Norwegian North Sea

    Ivar Aasen oil field in the Norwegian North Sea has begun producing (OGJ Online, Oct. 25, 2016). Oil production began Dec. 24, some 4 years after the plan for development and operation was submitted.

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    Fri, 30 Dec 2016

  1. Aker BP starts up Ivar Aasen offshore Norway

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    Wed, 28 Dec 2016

  2. Speakers see challenges in formulating ‘rational’ US energy policy

    American Petroleum Institute Pres. Jack N. Gerard expressed hope that energy will provide a basis for bipartisan cooperation when the Trump administration and 115th Congress assume power in January 2017. But other speakers—representing the oil and gas, coal, nuclear, wind, and solar industries at a ...

    Online Articles

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    Mon, 21 Nov 2016

  3. KJ Energy acquires interests in 329 oil & gas wells in East Texas and North Louisiana

    The properties include 329 oil and gas wells and associated facilities. The transaction closed on February 29, 2016. 

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    Wed, 9 Mar 2016

  4. SIBUR makes organizational, staff changes

    SIBUR has completed a process of organizational and staff changes, including the transfer of a number of management functions to the regional level.

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    Tue, 5 Apr 2016

  5. House LNG export measure’s sponsor cheers amendment in defense bill

    The author of a US House bill that aims to facilitate US exports of LNG applauded its adoption as an amendment to the fiscal 2017 defense appropriations bill by the Armed Services Committee on Apr. 27. “That greatly improved its chances of being enacted because the president isn’t about to veto the ...

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    Thu, 28 Apr 2016

  6. KJ Energy acquires interests in 329 wells in Texas and Louisiana

    KJ Energy LLC today has acquired oil and gas assets in East Texas and North Louisiana. The transaction closed on Feb. 29.

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    Tue, 8 Mar 2016

  7. Russian initiative aims to develop ‘home-grown’ seismic streamer for Arctic exploration

    The Ministry of Industry and Trade of the Russian Federation, Gazprom Neft, Rosgeologia, OAO Kontsern Okeanpribor, and the JSC Marine Arctic Geological Expedition have entered into a strategic partnership agreement.

    Online Articles

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    Tue, 5 Jul 2016

  8. Offshore floating production development looks solid to 2015

    The future of floating production systems is solid, says Infield in its “Floating Production Systems Market Report to 2015”.

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    Tue, 2 Aug 2011

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