3 Trends Affecting Oil & Gas This Fall
The summer season is almost in the books, which means it’s time to look ahead to oil & gas industry trends this fall that could affect your company and role.
Most notably, there is tremendous activity in West Texas, which ENTELEC will be part of this October when we host our Fall Seminar Series. There are other key considerations that you should be aware of.
Which Oil & Gas Trends Should You Pay Attention To This Fall?
ENTELEC will continue monitoring the latest developments in West Texas, the U.S. as a whole, and internationally to ensure that our members and conference attendees are kept up-to-speed on the latest information affecting them.
Trend #1: West Texas is Booming and Technology Will Keep It Booming
Oil boom. Gold rush. Sand revolution. There are many nicknames for what’s happening in West Texas with people and resources flowing to the Permian Basin to take advantage of natural gas resources.
The key to this production boom is the emergence of new technology to accelerate the rate of production. Energy technology, telecommunications technology, and oil & gas technology have all come together in one central location to help mine valuable resources beneath sand dunes that previously were worth nothing.
According to Bloomberg, companies will mine and ship about 22 million tons of sand to shale drillers around them in the Permian Basin, which has become the “hottest oil patch on earth.” Bloomberg adds that within a few years, the figure will double to about 50 million tons of sand mined and shipped.
This fall, ENTELEC looks forward to hosting decision-makers and industry leaders at our Fall Seminar Series in Odessa. This conference will bring together industry knowledge and experience to help solve real challenges faced by companies looking to take advantage of the capabilities in West Texas.
Trend #2: The U.S. is On The Way to the No. 1 Producer
A rising tide is raising all boats for U.S. oil producers. According to information released by the U.S. government this summer, the U.S. is on the way to becoming the No. 1 oil producer in the world.
This fall, production is expected to continue climbing as the U.S. looks to reach an average of 11.8 MMbpd of crude oil production in 2019. The government hopes to reach 12-even at some point in 2019.
“If the forecast holds, that would make the U.S. the world’s leading producer of crude,” said Linda Capuano, Administrator of the Energy Information Administration (EIA).
The key to reaching this target is resolving production bottlenecks in West Texas, which could affect domestic output throughout the fall into the end of the year. That’s why advancing the technological capabilities of companies operating in the Permian Basin is crucial for the U.S. to reach its production goals.
Trend #3: OPEC Has a Key Year-End Meeting
At the end of the fall, OPEC will be meeting in Vienna, Austria. This meeting on December 3 will be critical for setting the pace and tone for domestic and international supply in 2019.
Over the summer, OPEC tried to curb enthusiasm for massive production output by saying they do not want to contribute to a market where there is excess supply, which triggered the industry downturn a few years ago.
The position taken by OPEC has led to back-and-forth discussions with U.S. President Trump over the actions taken — or not taken — by OPEC to reduce the price of oil.
It will be interesting to see what OPEC decides in December because their stance on international oil supply could affect the overall industry in the new year.
Be Part of the Solution at the Fall Seminar Series
ENTELEC has strategically scheduled our Fall Seminar Series for Odessa, Texas, in mid-October. We believe this is the right location and time to bring together decision-makers and industry leaders to strategize solutions, learn about emerging technology, and address the latest oil & gas trends to continue fueling the U.S. energy revolution.
Find out how to register for the Fall Seminar Series, either as an ENTELEC member or as a non-member. If you have questions about the fall conference or becoming an ENTELEC member, please contact our team at firstname.lastname@example.org.