Offshore Drilling Expenditures Expected to Rise

Offshore oil and gas operators report plans to increase drilling expenditures in the 2nd half of 2017. A recent study conducted by Kimberlite Oilfield Research based on interviews with 81 offshore oil and gas operators worldwide reveals that for the first time in 2 years, operator sentiment has increased above 50 to a rating of 62.5 for the Gulf of Mexico and 63.5 for international offshore markets. This indicates that the offshore market has bottomed out and that the planned future activity levels in the offshore markets will increase particularly in areas with existing fields and infrastructure. The Kimberlite report also included interviews with 191 land oil and gas operators worldwide revealing that oil and gas operating companies drilling plans for 2017 reflect a significant improvement versus that observed in 2016. US land operators plan to drill 30% more wells in 2017 versus that of 2016 and the US land rig count has doubled in the past year. US land operator sentiment trend reveal