ConocoPhillips is one of the largest gas and oil companies in the world. In fact, they are the largest independent producer of gas and oil, and they know better than anyone else does that there are plenty of highs and lows in the field. They are very confident that there is going to be a recovery, and they feel that it may happen relatively soon. They’ve already started plans to add rigs in 2017 around the United States in some of the top areas for shale. Even though they’ve cut back on their spending over the past year, they feel that recovery is just a matter of time.
ConocoPhillips admits to having slowed their production to “adjust to the current market conditions and lower commodity prices”. However, they say that the slowdown is only temporary. They plan to increase the number of rigs they have in Texas from seven up to twelve and from five in North Dakota up to ten. This shows that they still have plenty of confidence when it comes to shale, and they should. Shale has been booming for several years, and despite the slowdown, it is still very important. It has played a key role when it comes to propelling the United States to the top of the heap in terms of oil and gas production for the last several years. It has also provided some measure of energy independence for the country.
Right now, they feel that we are near the bottoming out phase of the oil price drop, and they believe that supply and demand will start to return to normal over the coming year. Once that happens, they are eager to ramp up their production once more. They are certainly not the only oil company that is taking this tactic. While no company likes the idea of slowing down and shuttering rigs, it is a matter of business. Sometimes it simply has to happen in this industry for the companies to continue. Those who get into it should know that it could be volatile and that even when things fall, they will once again rise.
Oil companies that are looking to find ways to save more money should start looking into different and better equipment and technology. This could help to make them more efficient overall, and that can help to reduce operating costs without the need to sacrifice in other areas.
About Oil Works Inc.
Oil Works, Inc. is a complete drilling rig equipment manufacturer and service provider based in the Permian Basin for over 20 years. OWI’s product and service offerings include Derricks, Substructures, Drawworks Manufacturing, Mud Systems, Rig Walking Systems, Power Generation, Control Systems, Iron Roughneck Services and complete Rig Solutions built to API and ISO standards. OWI is also proud to offer 24/7 Service and Support.