It’s fair to say it has been another challenging year squared away in the drillers pipe tally and another accented by unprecedented oil price volatility, an unlikely OPEC deal and a giant unconventional field discovery in West Texas. With crude prices the highest they’ve been all year above $53 a barrel, there’s signs to remain hopeful about 2017.
Since peaking in 2014, exploration budgets have been reduced by up to 40% globally, which raises the issue of an approaching reserves replacement cliff. Will this catalyse an upswing at the back end of 2017? Combined with a softer EIA forecast for production from 8.9 for 2016 to 8.8 million barrels per day for 2017 and the OPEC agreement, we could be in for a surprising year.
Speculation on oil prices will bring us no closer to certainty. However, one thing we are certain about here at Rigforce HQ, is the sheer resolve in our drilling contracting community. Challenging markets, difficult decisions and tough conversations have been faced by all this year and one day in the future, we might just look back with a hint of acknowledgement, that this was a year that we all grew, but perhaps in ways that won’t be reflected on a balance sheet….
Wishing our community of drilling professionals and their families a happy and safe start to the New Year. We look forward to catching up with you all in 2017.