Saudi Looking Beyond Oil Price Slump As Rig Count Spikes

Phil Miller  |  March 20, 2015

It really looks like Aramco believes that prices will normalize somewhat in less than two years.

Loren Reagan  |  March 20, 2015

Saudi Aramco is not drilling more wells in the years to come they will drill the same amount as in the past years with more rigs, there expertise and how they manage the wells being drilled has gone from 4-5 wells drilled per year per rig to 2-3 wells drilled per rig per year, this I know I was there as a foreman and have first hand knowledge of the in experience and lack of understanding of what it takes to manage there projects. Just because there are more rigs on locations does not mean that they are drilling more wells per year, An example was one of the rigs in the gas drilling fleet 5 years ago was drilling 6 wells per year, now that same rig is drilling 2-2.5 wells per year, mostly because of Aramcos lack of understanding and personal inexperience, service companies like baker and slb managing drilling and not providing the service that is required, not only does the western hemisphere need a correction but so does the eastern hemisphere, global demand will out run new production if companies mentioned dont focus on what they know.

john  |  March 20, 2015

Shale production has a short shelf life. 18 Months per well ? Rigs are being withdrawn from service due to economic constraints Surplus should diminish in 18 months ?