Industry at a glance
Vol. 224 No. 12 Stocks are quickly approaching seasonal norms, due to a return to 2001 levels by OPEC and non-OPEC supplies. OPEC’s quota cut, effective November 1, demonstrated the organization’s readiness to
Stocks are quickly approaching seasonal norms, due to a return to 2001 levels by OPEC and non-OPEC supplies. OPECs quota cut, effective November 1, demonstrated the organizations readiness to safeguard oil prices, even at the expense of their members market share. Additionally, OPECs recent conference expressed an expectation that non-OPEC producers should also take measures to restrain ouput, helping to maintain market stability in 2004. World crude oil prices averaged $27.70, barely a dollar higher than last year. Meanwhile, due to reduced budgets in exploration, global geophysical activity has dropped steadily throughout 2003. Having reached its peak in February, it is now down almost 20%. Onshore US and Canadian drilling is taking advantage of high prices, running well ahead of year-ago levels. However, Gulf of Mexico activity is lagging, with several rigs departed. |