U. S. drilling to rise unless oil prices slump

Journal Article · Mon Jan 28 04:00:00 EST 1991 · Oil and Gas Journal; (USA)

OSTI ID:6025636

Petzet, G A

This paper discusses how U.S. well completions will post a strong increase in 1991 unless oil prices drop sharply. Gas drilling supported by federal tax credits will remain active in 1991. But the high crude oil prices that revived shallow oil drilling in second half 1990 may not persist. The permit totals were especially high in states where coalbed methane and tight gas sands drilling, supported by tax credits, are most widely spread. For most of the year operators were trying to meet a yearend 1990 deadline to spud such wells to ensure that gas sold from them during the 1990s would be eligible for the tax credits. Filing of intents to drill toward that end, therefore, was brisk. In October Congress extended the drilling permit through yearend 1992 and the eligibility period through 2002. Conventional gas drilling remains in the doldrums. Gas prices probably won't rise enough to boost drilling in 1991.

• OSTI ID: 6025636
• Journal Information: Oil and Gas Journal; (USA), Journal Name: Oil and Gas Journal; (USA) Vol. 89:4; ISSN OIGJA; ISSN 0030-1388
• Country of Publication: United States
• Language: English

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