October 17, 2021

Letter from the Publisher (March-April 2017)

Are you feeling the market rebound? What I’ve heard from industry sources and the numerous reports I’ve read, the oil and gas market is recovering, although slowly. Last November OPEC agreed to remove 1.2 million barrels a day from their global oil production until July of this year. We’re hopeful that they will renew the agreement for another six months when they meet again in May. That’s one positive checkmark we’re heading in the right direction. The OPEC agreement pushed Brent oil above $50 a barrel from its terrible low of $26 in February 2016. That’s the second positive checkmark. The third checkmark is that shale is gaining momentum in several resource plays, especially the Permian Basin, and companies are cautiously hiring again in the three states OILMAN covers. Anadarko recently announced that it’s moving 200 employees to its Midland, Texas office. With all the positive news many are expecting to see oil above $60 by 4Q17. Many in the industry are also hopeful that this turnaround will increase drilling activity in the Gulf of Mexico. Which is the topic of this issue. Offshore exploration and production expenses are much higher than onshore, take shale production for example, and with a lower price per barrel as we’ve seen, it’s not cost effective for companies to drill offshore. Many companies are turning to big data, digital technology, and the internet of things (IoT) to improve future exploration and production. Equipment maintenance scheduling is an area companies are starting to use the data they capture. GE Oil & Gas uses data analytics to decrease the amount of time equipment is offline and improve its reliability by accurately predicting when servicing will be needed and schedule it in advance. By taking advantage of data to improve efficiencies, offshore operators will be in a better position during the market turnaround and reap the rewards.

Author Profile
Publisher -

The publisher of Oilman Magazine, Emmanuel Sullivan is a technical writer who has built up his profile in the oil and gas industry. He lives and works in Houston, where he publishes Oilman on a bimonthly basis, distributing his magazine to energy thought leaders and professionals throughout Texas, Oklahoma, and Louisiana. At a time when technology is rapidly changing, he provides an invaluable service to oil and gas engineers and managers, offering them both broad and specific looks at the topics that affect their livelihoods. Sullivan earned his BA in Communications at Thomas Edison State University and his MA in Professional Writing at Chatham University. 

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