API: US drilling reaches 20-year high

July 26, 2006
High crude oil prices pushed US drilling activity to its highest level in 2 decades during the first half of 2006, the American Petroleum Institute reported on July 26.

Nick Snow
Washington Correspondent

WASHINGTON, DC, July 26 -- High crude oil prices pushed US drilling activity to its highest level in 2 decades during the first half of 2006, the American Petroleum Institute reported on July 26.

An estimated 24,729 oil wells, natural gas wells, and dry holes were completed in the US during that period, API said in its latest quarterly well completion report.

Completions totaled 12,681 during the second quarter, the highest for a single 3-month period since 1986's first quarter and 14% more than in 2005's second quarter, it added.

Natural gas remains the primary domestic drilling target, API said. Gas well completions reached a record estimated 14,784 in 2006's first half. API estimated 7,489 gas wells were drilled during the second quarter, 10% more than a year earlier.

API said while gas drilling continued to be strong, US oil well completions grew to levels not reached since the late 1980s. It said an estimated 7,265 oil wells were drilled in the US during the first half, and that 3,795 of those were completed during the second quarter, 21% more than in 2005's second quarter.

The 1,397 dry holes drilled in the US during the second quarter represented a 12% year-to-year increase, it added.

API said total estimated footage reached levels not seen since 1985 during 2006's first half (136,806 ft) and second quarter (70,055 ft).

Contact Nick Snow at [email protected].