Weak oil prices threaten after strong US first half drilling

Sagging crude oil prices have joined anemic natural gas prices to cloud the outlook for US and Canada drilling in the rest of 2012. As so many operators have steered capital spending away from dry gas drilling towards plays in formations with predominately oil and NGL, liquids production has risen rapidly, helping to depress liquids prices. Rig activity in the US was 12.4% higher in the first half of 2012 than the same period of 2011 (Table 1), but if the drop in oil prices persists operators could begin drilling fewer wells later this year. Continued drilling to hold leases in the face of lower oil prices, as happened with the shale gas plays, is also possible. The American Petroleum In...

Why Register?

Non-subscribers can only view whitepapers by providing name, home and email address, phone number and other information and comment on/rate articles.

Why Subscribe?

Oil & Gas Journal subscribers with login credentials can access these premium features of OGJ Online:

  • Current Issue – an html version of the current week's issue of Oil & Gas Journal.
  • Past Issues – An Electronic OGJ Archive. A keyword-searchable archive of all issues of Oil & Gas Journal dating back to 1990; also searchable by issue date.
  • Market Journal – a weekly round-up of the oil and gas markets, with observations from leading analysts.
  • Editor's Perspective – a short article of insight and opinion by the Editor of Oil & Gas Journal.
  • OGJ Industry Stats – quick access to current industry statistics from Oil & Gas Journal.
  • OGJ Survey Downloads - quick access to exclusive reports from Oil & Gas Journal.


Subscriber Help or Subscribe

Oil & Gas Journal Subscribers: Have your subscription number (from the mailing label on the cover of your Oil & Gas Journal) and e-mail address ready to set up your online account through Customer Service Assistant.

If you're not an Oil & Gas Journal subscriber, start a subscription and gain access to the subscriber areas of OGJ Online now.

Stay Connected