February 2017 | Business View Magazine

12 13 opening lines water projects, will go up approximately 9.4 percent, with increasing well depths and footage. n Canadian activity will begin to improve, gaining 21.6 percent to 4,212 wells. n Global drilling should increase mod- erately to 39,742 wells, for a 6.1 percent pick-up. n Global offshore drilling, reflecting stag- nant capex outside North America, will only increase 1.4 percent to 2,604 wells. Speaking to about 400 attendees at a breakfast briefing, Kurt Abraham,World Oil’s chief forecaster and editor, noted that U.S. production—which averaged 8.9 MMbopd in the fourth quarter, up from 8.7 MMbopd in the third quarter—appears to be on the rise. However, he warned, North America may have to continue in its new role as swing produc- er, and therefore may be required to remain flexible. Texas - Drilling in the Lone Star State will rise 26.4 percent, with double-digit increases expected for all 12 of the Railroad Commission districts.While the gains are being led by the Permian, with some additional recovery in the Eagle Ford, there is also significant improve- ment under way in conventional activity. Permian Basin - In 2016, operators drilled 3,198 wells in Railroad Commission Districts 8 and 7C, more than originally anticipated. For 2017,World Oil expects to see 3,999 wells drilled in these districts. For 2017, the industry projects a 10 percent increase in average lateral length for the Permian. Eagle Ford - In the Eagle Ford’s predominantly oil portion, concentrated in District 1, activity should increase 28.3 percent.World Oil pre- dicts that operators will drill 802 wells with an average TD of 14,250 ft. In the gas-heavy Rail- road Commission District 2, operators have said they plan to drill 638 wells to an average TD of 15,400 ft, a gain of 23.9 percent. Activity in Dis- trict 4 is also forecast to increase 19.1 percent. Gulf of Mexico -Activity has been at histori- cally low levels in the Gulf over the last several years, and 2016 was the lowest yet, with just 117 wells tallied. However, a core of deepwater development activity has continued, and it will continue to form the bulk of work in the Gulf. World Oil projects that drilling will increase