The Effects of Current Low Drilling Levels on Lower 48 Oil and Gas Production

Abstract

ABSTRACT The severe drop in oil and gas drilling activity since 1985 has led to growing concerns about the near-term oil and gas production outlook in the lower-48 states. The Gas Research Institute has developed a detailed representation of the lower-48 oil and gas resource base and the activities necessary to explore and develop that resource base. Combined with a highly detailed assessment of gas well completions, the analysis indicates that lower-48 oil and gas production could be maintained at their 1986–87 levels through the year 2000 without a return to the peak drilling activity levels of the 1981–85 period and with little increase in real oil prices above the 1985 level. The development of new technology and improved production practices to improve the recovery of hydrocarbons-in-place in known oil and gas fields will play a critical role in sustaining lower-48 oil and gas production at their 1986–87 levels through the year 2000.