background image
Therefore, exports of both com-
modities will be crucial to balance
the markets.
Exploration and production
costs will rise over the next few
years, but technological and
management innovation will help
to offset the increases.
The U.S. will not abandon its
position as the low cost marginal
supplier.
For NGLs, expected production
growth continues to come from
the Permian due to the superior
economics along with proximity
to market.
The recent weakness in prices
has been due to the lack of in-
frastructure, but moving forward
slight gains are expected as
crackers come online to support
additional ethane recovery.
The industry keeps finding new apparently prolific gas fields, Mancos,
Alpine High and the Austin Chalk, for example.
As they develop, they hold the prospect of disrupting gas flows across the
country and placing significant stress on existing infrastructure.
Drillinginfo continues to expect the long term price equilibrium to be
$60/Bbl for crude and $2.65/MMBtu for natural gas.
(source: Drillinginfo delivers business-critical insights to the energy,
power, and commodities markets.
Our state-of-the-art SaaS platform offers sophisticated technology, pow-
erful analytics, and industry-leading data.
Our solutions deliver value across upstream, midstream and downstream
markets, empowering exploration and production (E&P), oilfield services,
midstream, utilities, trading and risk, and capital markets companies to
be more collaborative, efficient, and competitive.
Drillinginfo delivers actionable intelligence over mobile, web, and desk-
top to analyze and reduce risk, conduct competitive benchmarking, and
uncover market insights.
Drillinginfo serves over 3,500 companies globally from its Austin, Texas,
headquarters and has approximately 550 employees.
For more information visit: drillinginfo.com)
U.S. Now Lead Producer Of Natural Gas & Oil
Production surpasses Saudi Arabia with an eye towards Russia next
the fishing action
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columnist Taylor
Kovar debut... Pg 3
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welcome Ann Wilson
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United States Sends a Message
to Oil Producing Countries:
Catch Me If You Can
Austin, TX, Apr 9, 2018: American
energy abundance has brought a
new game in the world oil markets -
the U.S. is now the leading producer
of natural gas and oil/petroleum
products.
U.S. production has surpassed Saudi
Arabia to become the second largest
producer of crude oil in the world.
The rapid growth in production over
the last several years comes on
the back of great shale production
economics.
If the U.S. continues to grow pro-
duction as expected, it will likely
surpass Russia to become the #1
producer of crude oil in the world by
2018 JUN/JUL #9-3
the end of 2018.
¡°As U.S. production grows, every
incremental barrel will be exported, pushing out a previously foreign
supplied barrel,¡± said Bernadette Johnson, VP of Market Intelligence at
Drillinginfo.
¡°U.S. market share will continue to grow and the combination of current
price levels and low breakeven economics of US shale production will
ensure that, by the end of the year, the US will be looking back at Saudi
Arabia, Russia, and all other crude oil producing countries saying ¡°Catch
Me If You Can.
¡°Even should cost increases occur, efficiency gains are likely to more than
offset the impact on production,¡± added Johnson.
In the latest installment of its FundamentalEdge series, Catch Me If You
Can, Drillinginfo takes a look at how the U.S. continues to produce higher
volumes of energy despite weak prices.
In addition to record-setting oil and natural gas production, Drillinginfo¡¯s
latest analysis also covers historic weather averages and impacts to en-
ergy consumption, storage inventories, ethane rejection and recoveries,
as well as industry returns/valuations.
Key Takeaways from Catch Me If You Can:
The U.S. out produces domestic demand for oil and natural gas at about
$55-$60 crude oil and $2.65-$2.75 natural gas.
(Image: Drillinginfo)