No Overestimating the Importance of Unconventional Plays
The Unconventional Drilling Report
Tuesday, September 27, 2011
You can’t overestimate the importance of unconventional plays not only to U.S. drilling and production but also to America’s energy picture. Even as robust oil prices have buoyed U.S. conventional drilling, unconventional rigs have managed to eke out a small gain in market share to 70.7% in 3Q 2011 to date from 69.5% a year ago, according to The Unconventional Drilling Report. It’s clear that unconventional liquids rigs (+48% YOY) are the main driver of the 20% YOY increase in total rig count. Meanwhile, production gains from unconventional drilling have enabled the U.S. to reverse a long decline in U.S. oil and gas output. U.S. crude oil production fell every year since 1985 until 2009’s uptick of 8%, followed by another 2% in 2010. By 2012, EIA estimates total U.S. petroleum liquids production will have risen by more than 1 million barrels per day from 2009. Even with a steep drop in Gulf of Mexico output, EIA predicts U.S. gas production will grow by 4 Bcfd (6.4%) this year and another 1.1 Bcfd in 2012.
Category: U.S. Land Industry Review