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Released February 22, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--While the U.S. has been a net importer of crude oil and other petroleum products for most of its history, that changed in 2020, when the country became a net petroleum exporter. According the U.S. Energy Information Administration (EIA), the U.S. reached its most recent peak of crude oil production in November 2019, when it produced 12.9 million barrels per day (BBL/d). However, due to well curtailment and a drop in drilling activity brought about low oil prices caused by the COVID-19 pandemic, U.S. crude oil production declined to an average production of 11.3 million BBL/d in 2020. While this production figure is expected to gain some ground in the coming two years, the EIA does not expect U.S. production to regain its former peaks this year or next year.
The move toward becoming a net petroleum importer again comes despite the EIA's projected increase in U.S. refined petroleum product exports in 2021 and 2022. U.S. net refined product exports averaged 3.4 million BBL/d in 2020. This is expected to rise to 3.5 million BBL/d in 2021 and 3.9 million BBL/d in 2022, as global demand for these products increases from its low point in the first half of 2020. This is more than offset by the projected increase in crude imports, which are forecast to increase from an average of 2.7 million BBL/d in 2020 to 3.7 million BBL/d in 2021 and 4.4 million BBL/d in 2022.
However, as crude oil prices continue to increase from the 2020 trough, so has U.S. drilling activity. Industrial Info is tracking nearly $9 billion in active drilling projects in the U.S., both onshore and offshore. Much of the onshore oil drilling activity is taking place in the Texas Permian Basin, which gained the status as the highest-producing oil field in the world in the first half of 2019. Examples include Diamondback Energy Incorporated's (NASDAQ:FANG) (Midland, Texas) 2021 drilling program for the ST oil production field near Pecos, Texas. The project is expected to kick off soon and entails drilling a 10,600-foot-deep horizontal well in the Spraberry formation of the Permian to produce crude oil and natural gas. The project is expected to be completed in the first half of this year. For more information, see Industrial Info's project report.
Texas oil projects outside of the Permian include Barron Petroleum LLC's (Graham, Texas) Sahota 2, 3 and 4 drilling programs, about 90 miles northwest of Fort Worth. Sahota 2 entails drilling a 7,700-foot-deep well, while Sahota 3 and 4 include wells with a 9,000-foot depth. The drilling for all of the wells is expected to begin and finish this summer. For more information, see Industrial Info's project reports on Sahota 2, Sahota 3 and Sahota 4.
While drilling wells on land is relatively quick and inexpensive compared with offshore projects, drilling and production projects in the Gulf of Mexico are still underway. Such projects include BP plc's (NYSE:BP) (London, England) Mad Dog 2 project. The Mad Dog field is located in the deepwater Gulf, about 190 miles south of New Orleans, Louisiana, in water depth of about 5,000 to 7,000 feet. The Mad Dog 2 project consists of three drilling programs and a floating production unit (FPU) with subsea infrastructure. The 2021 drilling program is underway and expected to last about 160 days in water depths of 4,940 feet. The 2022 drilling program entails the drilling of two wells before the start of production, which is expected in 2023. Construction on the FPU is underway and expected to wrap up later this year. Worley (North Sydney, Australia) is the contractor. Click here for a list of drilling projects related to Mad Dog 2 and see Industrial Info's project reports on the FPU and subsea infrastructure.
Other Gulf of Mexico drilling programs include Talos Energy Incorporated's (NYSE:TALO) (Houston, Texas) 2021 drilling program for the SS-114-L (LBJ) Satellite production platform. The program is expected to kick off in the first half of this year and wrap up in the fourth quarter. It entails drilling and completing two wells, installing a 4,500-foot water injection pipeline as well as two long lease-term pipelines. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
The move toward becoming a net petroleum importer again comes despite the EIA's projected increase in U.S. refined petroleum product exports in 2021 and 2022. U.S. net refined product exports averaged 3.4 million BBL/d in 2020. This is expected to rise to 3.5 million BBL/d in 2021 and 3.9 million BBL/d in 2022, as global demand for these products increases from its low point in the first half of 2020. This is more than offset by the projected increase in crude imports, which are forecast to increase from an average of 2.7 million BBL/d in 2020 to 3.7 million BBL/d in 2021 and 4.4 million BBL/d in 2022.
However, as crude oil prices continue to increase from the 2020 trough, so has U.S. drilling activity. Industrial Info is tracking nearly $9 billion in active drilling projects in the U.S., both onshore and offshore. Much of the onshore oil drilling activity is taking place in the Texas Permian Basin, which gained the status as the highest-producing oil field in the world in the first half of 2019. Examples include Diamondback Energy Incorporated's (NASDAQ:FANG) (Midland, Texas) 2021 drilling program for the ST oil production field near Pecos, Texas. The project is expected to kick off soon and entails drilling a 10,600-foot-deep horizontal well in the Spraberry formation of the Permian to produce crude oil and natural gas. The project is expected to be completed in the first half of this year. For more information, see Industrial Info's project report.
Texas oil projects outside of the Permian include Barron Petroleum LLC's (Graham, Texas) Sahota 2, 3 and 4 drilling programs, about 90 miles northwest of Fort Worth. Sahota 2 entails drilling a 7,700-foot-deep well, while Sahota 3 and 4 include wells with a 9,000-foot depth. The drilling for all of the wells is expected to begin and finish this summer. For more information, see Industrial Info's project reports on Sahota 2, Sahota 3 and Sahota 4.
While drilling wells on land is relatively quick and inexpensive compared with offshore projects, drilling and production projects in the Gulf of Mexico are still underway. Such projects include BP plc's (NYSE:BP) (London, England) Mad Dog 2 project. The Mad Dog field is located in the deepwater Gulf, about 190 miles south of New Orleans, Louisiana, in water depth of about 5,000 to 7,000 feet. The Mad Dog 2 project consists of three drilling programs and a floating production unit (FPU) with subsea infrastructure. The 2021 drilling program is underway and expected to last about 160 days in water depths of 4,940 feet. The 2022 drilling program entails the drilling of two wells before the start of production, which is expected in 2023. Construction on the FPU is underway and expected to wrap up later this year. Worley (North Sydney, Australia) is the contractor. Click here for a list of drilling projects related to Mad Dog 2 and see Industrial Info's project reports on the FPU and subsea infrastructure.
Other Gulf of Mexico drilling programs include Talos Energy Incorporated's (NYSE:TALO) (Houston, Texas) 2021 drilling program for the SS-114-L (LBJ) Satellite production platform. The program is expected to kick off in the first half of this year and wrap up in the fourth quarter. It entails drilling and completing two wells, installing a 4,500-foot water injection pipeline as well as two long lease-term pipelines. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
