Market Trends of United States Oil and Gas Upstream Industry
Onshore Segment to Dominate the Market
- In 2022, the United States produced an average of 11.9 million-barrel per day of crude oil increase from the past year. United States natural gas production in 2022 grew by 4% to 4.9 million cubic feet daily. Appalachia, Permian, and Haynesville in the United States accounted for 60% of the country's production in 2022.
- In May 2022, the Railroad Commission of Texas (RRC) permitted drilling 963 new wells compared to 631 in May 2021. The breakdown of well types for original drilling permits is 221 for oil, 76 for gas, 601 for oil or gas, 53 for injection, and 12 for other permits.
- In May 2023, INEOS Energy announced the completion of the acquisition of a significant tranche of oil and gas assets of Chesapeake in the Eagle Ford shale, south Texas, for USD 1.4 billion. The deal marks INEOS Energy's entry into the US onshore oil and gas market as an operator as it acquires 2,300 wells, producing a net of 36,000 BOED.
- Therefore, owing to the mentioned points, activities onshore will likely increase and positively impact the US oil and gas upstream market over the forecast period.
Understand The Key Trends Shaping This Market
Download PDF
Increasing Deep Water Activities Expected to Drive the Market
- Deepwater activities in the Gulf of Mexico will likely drive the market during the forecast period. Many companies in 2014 decreased their investments in the offshore market. Still, offshore activities again gained pace due to the decrease in the cost of drilling rigs and less investment return period than onshore. Due to this, Deepwater is expected to see significant growth in the United States oil and gas upstream market during the forecast period.
- In September 2022, Transocean announced 2 new contracts for its ultra-deepwater drillship Deepwater Asgard in the United States Gulf of Mexico. These contracts will require about 14 months of work and USD 181 million. The first contract is worth USD 395,000 per day with Murphy Oil, and the second is USD 440,000 per day and up to USD 40,000 per day for additional services. It is expected to begin in the first half of 2023.
- In October 2022, ExxonMobil announced 2 discoveries at the Sailfin-1 and Yarrow-1 wells in the Stabroek block offshore Guyana. It will add to the company's extensive portfolio of development opportunities. The company made more than 30 discoveries on the block since 2015.
- In December 2022, the United States rig count was around 779. Hence, the increasing deepwater activities are expected to drive the United States' oil and gas upstream market during the forecast period.
