Issue: February 2023
Special Focus: 2023 Forecast & Review
Worldwide E&P spending is set to increase in 2023, albeit slower than growth experienced in 2022. Spending deceleration in North America (NAM) follows a near-record NAM level in 2022. International spending’s growth will slip, due to declines in Russia.
The razor-thin Republican House majority must protect the upstream industry for two years from the Biden administration’s increasingly harmful federal policies.
Although spending will decelerate in North America, the 2023 forecast for a 19% U.S. capex increase follows a near-record 46% gain in 2022. U.S. drilling will increase 8.2%, with total footage forecast to climb 8.7%, to 289 MMft of hole.
Despite rising interest rates and fear of an economic recession, WTI surged to a 15-year high of $114.84/bbl in June 2022, as the war in Ukraine continued to restrict Russian supply and fueled global unrest.
Drilling activity increased 51.3% on an average yearly basis, driving U.S. crude production up to 11.9 MMbopd in 2022, a 6.4% increase compared to the 11.2 MMbopd averaged during 2021.
Proved reserves of natural gas reported by operators established a new record in the United States in 2021, while proved U.S. reserves of oil increased but did not quite return to pre-pandemic levels.
Coming off a strong rebound year, the Canadian oil patch is on an upward trend, with strong prices and increased spending. But political uncertainty continues to cast a pall over any long-term optimism.
Drilling and production are set to experience gains in most regions during 2022, as operators seek to balance development of new supplies with global demand.
Extracting everything: How innovative drilling technology answers the demands of the modern energy industry
To extract all possible hydrocarbons from complex reservoirs, advanced RSS and LWD technologies improve overall drilling efficiencies and lower construction costs over the life of the well.
A reliable, cost-effective wellhead design creates value when constructing and equipping slimhole, monobore gas wells.
Autonomous drilling has not progressed as far as previously thought. As an industry, we silo parts of the autonomous system. This needs to change to a full-system approach to progress further.
Fishing operations can be complex and, until now, such tasks have been performed somewhat “blindly,” which runs the risk of turning any job into a time-consuming saga. Now, a new tool has finally brought the oft-reviled challenge of downhole fishing into the digital age.
Optimism prevails as investments and improvements point to production growth.
Price volatility, pipeline scarcity help corral production
Passage of the Inflation Reduction Act restored GOM leasing and hopefully paves the way for further improvements that include permitting reform and common sense CCS regulations.
In its study of ESG disclosures released in mid-December, the UK North Sea Transition Authority finds that reporting by companies is on a positive trajectory, with continued focus on the ‘E’ of ESG. However, data remain scattered and often difficult to find across several reports issued by each company.
Proceeding forward with caution
The oldest well stimulation technique
Back to Saudi Arabia, China, and oil pricing in dollars
It's all about balance
CCUS can reconcile wayward energy policy, conflicting perspectives
Green power struggle threatens global energy security
Crude prices inched up in January, as the prospect of increased Chinese demand offset the apprehension that inflation and steadily rising interest rates would trigger a global economic recession.