U. S. petroleum industry adjusts to tough economy
This paper reports that oil and gas companies in the US are curbing costs and redirecting spending to survive the worst decline of petroleum industry activity on record. Persistently weak US natural gas prices and shaky oil prices worldwide have put pressure on domestic companies to become low cost producers. Efforts to cut exploration and development costs have depressed activity in the US, one of the world's most mature oil and gas provinces. International E and D hot spots include the UK North Sea, Yemen, Thailand, Myanmar, Pakistan, and Latin America. Prospects in the Commonwealth of Independent States also continue to generate considerable enthusiasm. Operators struggling to survive or searching for funds to spend on non-US prospects are trying to shuck noncore US assets. Other favored cost cutting strategies include reducing and restructuring debt, operating and administrative staffs, and internal organizations. Major integrated companies are able to add value by refocusing refining, petrochemical, or marketing operations. But independents must adapt operations close to the wellhead to become low cost producers. Whatever tactics are used to mitigate effects of low US activity, no domestic company --- from the largest integrated major to the smallest independent producer --- has proven to be immune from the downturn.
- OSTI ID:
- 7232711
- Journal Information:
- Oil and Gas Journal; (United States), Vol. 90:28; ISSN 0030-1388
- Country of Publication:
- United States
- Language:
- English
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03 NATURAL GAS
29 ENERGY PLANNING
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NATURAL GAS
PRICES
NATURAL GAS INDUSTRY
ECONOMIC ANALYSIS
PETROLEUM INDUSTRY
USA
INTERNATIONAL COOPERATION
MARKET
PETROLEUM REFINERIES
WELL DRILLING
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DEVELOPED COUNTRIES
DRILLING
ECONOMICS
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
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GASES
INDUSTRIAL PLANTS
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030600 - Natural Gas- Economic
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294002 - Energy Planning & Policy- Petroleum
294003 - Energy Planning & Policy- Natural Gas