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Crude oil has always been seen as being one of the most important sources of energy that has fuelled the growth of modern civilization. With the growth and progress of modern civilization depending largely on the oil, it is therefore, no wonder that the oilfields constitute as one of the most important sectors that determine a number of other global factors such as the economy, technological advancements and the like.

Trends in the Oil Field Sector to Watch Out For In 2017

2016 being an eventful year in many ways for the oil field industry, 2017 is expected to be more so. When it comes to predicting the future of this industry it is possible for even the astute experts to go wrong. Though it is easier to talk about the trends in the oil field industry in hindsight rather than the future possibilities, there are certain trends that one could watch out for in the coming year.

The demand and supply gap is likely to reduce in the coming year with a gradual reduction in the stockpile. While the global capital expenditure is likely to remain weak, exploration and production capital in the US is likely to bounce back. It is also expected to be a good year for Russia and the Middle East.

With the Exploration and Production companies resetting their financial allocation at higher levels, the impetus of the rigs based in the US and Canada are likely to roll over into 2017 from 2016. There is likely to be a proportionate reduction in the rig demand and drilling time, with the average utilization of rigs causing a hike of about $2000-3000 per day.

The offshore drillers are likely to get a boost in the coming year largely owing to the decision of the OPEC. The clearing of credit tracks is been seen as an effective contributor to the reduction in overhead pressures.

The demand in pressure pumping and frac horsepower are also likely to take some time before they gain the desired momentum. Entrepreneurs are more concerned with the maintenance of market shares more than a hike in the price at the moment.

3 Key Oil Projects to Look Out For In 2017

The prices of oil and gas gradually came to a stable point and the prominent oil producers reacted to these changes in a variety of ways in 2016. In spite of the various cuts in the budget in the previous year, a considerable amount of promising investments are being expected to roll out in 2017.

• Turkish stream– After a period of stagnation, Russia and Turkey are likely to move forward with the Turkish Stream Pipeline project in 2017. The first phase of this project is likely to be complete within the year 2019 and the total cost of the project has been estimated to be about $15.1 billion.
• Egina field development– With project cost of about $16 billion, the Engina field development project in Nigeria is all set to be able to start its first oil production by 2018.
• Tengiz field expansion– The Tengiz Field Operations in Kazakhstan is likely to begin from 2017 with a project cost of $36.8 billion.

In conclusion, one could say that 2017 will definitely be an eventful year for the oil field industry all throughout the globe.

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