HOUSTON, Sept. 30, 2016 /PRNewswire/ -- S&P Global
Platts, the leading independent provider of information and
benchmark prices for the commodities and energy markets, announced
today the release of the Platts RigData U.S. Land Rig Three-Year
Forecast.
The annual Forecast, now in its 2nd year, is an
analysis of the key drivers of domestic oil and gas supplies and
what they imply for future trends over the next three years for
land rig demand. As the report notes, oil prices will continue to
be the primary catalyst determining U.S. rig demand in the months
ahead.
"OPEC's latest agreement to modestly reduce production, a move
aimed at supporting the price of crude oil globally, reinforces our
expectations of strengthened U.S. rig counts next year," said
Trey Cowan, senior industry
analyst, Platts RigData, a forecasting unit of S&P Global
Platts.
Specifically, Platts RigData projects the U.S. rig count will
grow by an average of 131 rigs or 29% year over year during 2017.
This would be an increase from the average estimated 449 rigs
actively drilling in 2016.
Forecast Highlights Include:
- Oil prices to trend higher as incremental U.S. supply levels
normalize
- Oilfield service activity to continue the recovery begun in
May
- Elevated production derived from "high grading" (where
operators focus on developing the highest returning wells) has
entered the latter stages for this recovery cycle
- Lower incremental-production volumes per well are likely
- Despite recent drawdowns in drilled-but-uncompleted (DUCs)
wells, oil and natural gas supply unlikely to expand as rapidly as
first signaled
"In our opinion, the expected smaller incremental-well
production volumes would imply the need for a greater number of
wells to be brought into production in order to reach targeted
production goals," said Cowan. "To this end, Platts RigData expects
more than 11,000 U.S. oil & gas wells to be drilled during
2017. That would be an improvement of 25% year over year versus our
8,900 well spud estimate for 2016."
The Platts RigData U.S. Land Rig Three-Year Forecast looks at
the full U.S. landscape, with deep dives into analysis of eight key
regions active in oil and gas development. Utilizing Platts
RigData's extensive database, the Forecast goes into granular
detail of specifications and the technical capabilities of each rig
and its working history. Unlike some approaches, the levels of
production, consumption, and price trends projected in the Platts
RigData Forecast are based on rig demand.
Key components of the Platts RigData U.S. Land Rig
Three-Year Forecast:
- Regional projections of a base case plus a downside and upside
growth case
- Regional summaries of developments, commodity prices, and
operators' drilling sentiments
- Assessment of macroeconomics
- Outlook for technology advancements, effects of rig fleet age,
and financial health of large service providers
- DUCs inventory overhang and outlook
The 2016 edition of the Platts RigData U.S. Land Rig Three-Year
Forecast is available in print and PDF format, including an Excel
workbook with all supporting data. For more information or to
subscribe to the Forecast, visit
http://rigdata.com/us-land-rig-three-year-forecast.
S&P Global Platts acquired RigData, a provider of daily
information on rig activity for the natural gas and oil markets
across North America, on
June 1, 2016.
CONTACT
Americas: Kathleen
Tanzy, + 1 917 331 4607,
kathleen.tanzy@spglobal.com
Houston: Gregory Tsichlis, + 817 616 2081,
greg.tsichlis@spglobal.com
About S&P Global Platts
At S&P Global Platts,
we provide the insights; you make better informed trading and
business decisions with confidence. We're the leading independent
provider of information and benchmark prices for the commodities
and energy markets. Customers in over 150 countries look to our
expertise in news, pricing and analytics to deliver greater
transparency and efficiency to markets. S&P Global Platts
coverage includes oil and gas, power, petrochemicals, metals,
agriculture and shipping.
S&P Global Platts is a division of S&P Global (NYSE:
SPGI), which provides essential intelligence for individuals,
companies and governments to make decisions with confidence. For
more information, visit www.platts.com or
www.platts.com/rigdata
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SOURCE S&P Global Platts