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August Oil & Gas News Roundup

In August, onshore drilling is set to increase over the next five years, oil and gas producers may see a record in surplus cash from high prices, Texas oil and gas employment has seen a huge uptick, and drilling automation streamlines operations and improves safety. Continue reading our oil and gas news roundup to learn more about what’s happening in the industry this month.

Onshore Drilling to Increase Over the Next Five Years

The specialist energy market research and consulting firm Westwood Global Energy has revealed a healthy recovery roadmap for the global land rig market, driven by higher commodity pricing and mounting pressures around energy security.

Westwood expects many regions to recover from the dramatic global downturn throughout 2020 better than previously expected. In 2020, levels reached a low of around 39,000 wells drilled onshore globally, but activity in 2022 is expected to reach 49,600 before climbing to around 60,000 wells in 2026.

The increase in drilling demand combined with higher commodity pricing has caused rig day rates to increase in several regions. The US has seen day rates increase by 25% over 2022, with average day rates for the second quarter of 2022 reaching $26,500.

For more information on these increasing rates across the US and other countries, click here.

Oil and Gas Producers to see Record Surplus Cash from High Prices

High energy prices could almost double oil producers’ free cash from operations this year to $1.4 trillion, money that can be used to finance a shift to renewable fuels, pay down debt, or reward investors, according to a study.

The price trend should continue and the global energy business should generate another $1.5 trillion in surplus cash by 2030. That cash could potentially kick-start the low-carbon economy, raising the industry’s share of green CAPEX from its current 5% to as much as 30%. Or it could be used to completely erase the debt of an industry that has been constrained by losses during the COVID-19 pandemic.

For more on this record surplus check out the full article at oilandgas360.com.

Texas Oil and Gas Employment Uptick Breaks 11-Year Record

As drilling activity in Texas continues to increase, so are job levels for the state’s oil and natural gas industry. Citing the latest Current Employment Statistics report from the U.S. Bureau of Labor Statistics, the Texas Independent Producers and Royalty Owners Association (TIPRO) highlighted new employment figures showing significant growth.

According to TIPRO’s analysis, direct Texas upstream employment for July 2022 totaled 202,800, an increase of 6,800 jobs from June employment numbers. Texas upstream employment in July 2022 represented an increase of 35,400 positions compared to July 2021, including an increase of 8,600 in oil and natural gas extraction and 26,800 jobs in the services sector.

The Houston metropolitan area, the largest region in the state for industry employment, showed an increase of 2,000 upstream jobs last month compared to June, for a total of 68,800 direct positions, according to TIPRO. Houston metro upstream employment in July 2022 represented an increase of 11,000 jobs compared to July 2021, including an increase of 5,200 in oil and natural gas extraction and 5,800 jobs in the services sector.

To read the whole article check out rigzone.com.

Drilling Automation Streamlines Operations and Improves Safety

Digitalization is changing the face of drilling, allowing rig owners to improve performance and reducing operational costs for operators. The value of this transformation is evident but making the most of it requires an investment that not every company has the resources to make. Nabors has developed technology that not only enhances the performance of its own fleet but also can be deployed on rigs owned by other drilling contractors to deliver similar improvements in safety, efficiency, and emissions.

For all the information on this new technology click here.

Reach Out to Tiger General

We hope you found our August oil and gas news roundup interesting. If you need a new piece of equipment, fill out the Tiger General Truck Inquiry Form today!