A version of this story appears in the August 2017, edition of Oil and Gas Investor. Subscribe to the magazine here.
Fasten those seatbelts. Oil and gas has a been busier than commonly understood and the tsunami of accelerating field work in first-half 2017 will add significant crude oil production by year-end 2017.
The production surge does not bode well for the price of oil heading into 2018. Still, it is an unequivocal testimonial to the size of the mobilization effort that the oil service sector has provided exiting the worst financial trough in 35 years.
It is useful at midyear to revisit the industry’s oft-discussed manufacturing model to benchmark the arc of development in tight formation plays. Whether measured by new drilling permits, active rig count, wells waiting on completion, or completions themselves, field activity underwent a step level change in first-half 2017.