From discreet talks about OPEC deals being structured to the hardly inconspicuous occasion of Trump assuming power; 2016 hasn't exactly passed without incident. As the year draws to a close, a review of the mostly unprecedented Industry events that filled a year almost gone by:-
- The much talked about OPEC deal: The first output cut deal in fifteen years between OPEC and non OPEC producers finally fell through. And what's more? Oil gained 1.5% on Tuesday.
- The Permian Basin: After several companies kept announcing acquisitions throughout the year and drilling kept reassuring profitable returns, The Permian Basin has safely been established as the gift that keeps on giving.
- Dipping drilling costs: This is not a drill, pun unintended. As soon as January this year, had operators reporting a staggering 30% dip in costs.
- Deepwater Exploration in sunny Mexico: On December 5, several Oil and Gas majors came together to invest in exploration in the Gulf of Mexico, thereby keeping deepwater exploration alive despite unfavorable market conditions.
- Rise in Expected Ultimate Recoveries: Process improvements and advancing technologies were also largely responsible for a dramatic uptick in EURs during 2016. Drilling times were shortened, new hydraulic fracturing technologies enabled producers to better identify sweet spots and access more of the formation rock during each frac job, and gathering and pipeline infrastructure continued to be built out in younger play areas, allowing more efficient takeaways for associated natural gas and liquids.
- Hydraulic Fracturing exonerated: Due to certain last minute hush-hush changes made by top EPA officials to a five year old study that linked fracking to deteriorating conditions of america's drinking water, the technology has now been given a clean chit. Scientists announced that the changes lack evidence.