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Tuesday, August 05, 2003 11:19:57 AM
U.S. Natural Gas Drillers Struggle to Maintain Production Levels, Says S&P Equity Analyst in New Industry Outlook
Monday August 4, 10:58 am ET
NEW YORK, Aug. 4 /PRNewswire/ -- In a semi-annual survey of the oil and gas equipment and services industry, Standard & Poor's equity analyst covering the industry notes that, despite the environment of high prices for oil and natural gas that has existed since last year, only in recent months have these prices led to higher U.S. drilling activity. Natural gas drillers in particular, faced with high depletion rates from existing wells, are struggling to maintain existing production levels of a product whose demand has grown sharply in recent years. The survey, Industry Survey on Oil & Gas: Equipment & Services, is published twice yearly by Standard & Poor's, a leading provider of independent research, indices and ratings.
"With natural gas well depletion rates of almost 30% in most areas of the nation, it has been a major challenge to maintain, let alone increase, U.S. natural gas production," says John Kartsonas, Oil & Gas Equipment & Services Analyst, Standard & Poor's Equity Research Services, who authored the survey. "Standard & Poor's expects land drilling activity to increase throughout 2003, achieving utilization rates of nearly 87%. We also foresee land-drilling margins improving during the second half of the year. But so-called deep shelf production, from reservoirs deeper than 15,000 feet in the Gulf of Mexico's Outer Continental Shelf, may be one of the most attractive sources of additional natural gas supply," concludes Kartsonas.
'Industry Survey for the Oil & Gas: Equipment & Services Industry' looks at the issues affecting the main segments of the drilling and oilfield services industry. These include the boom-bust-boom energy cycle, field depletion rates, industry consolidation, and challenges in replacing experienced industry workers who were laid off during the last major downturn in 1998. The Survey also examines key industry statistics such as oil and natural gas prices, economic growth and demand, OPEC and non-OPEC production, rig counts and utilization rates, dayrates and daily margins, new rig construction, and exploration & production spending. In addition there is a look at key players in oilfield services, such as Baker Hughes, Halliburton and Schlumberger, and in drilling, such as Transocean, Noble and Nabors Industries.
Standard & Poor's Industry Surveys series, produced by its senior equity analysts, keeps a watchful eye on 51 U.S. industries, offering insights into trends and conditions that affect leading companies' market performance. Covering approximately 1,200 U.S. stocks, Standard & Poor's equity analysts have the largest U.S. equity research coverage count.
Standard & Poor's Industry Surveys provide a broad and fundamental overview of each industry's structure, its recent performance, and an analysis of trends that will influence it in the future. Each survey is organized into the following sections: Current Environment, Industry Profile/Industry Trends, How the Industry Operates, Key Industry Ratios and Statistics, How to Analyze a Company, Industry References, Comparative Company Analysis, and a Glossary of terms used in that industry. Both text and data are provided, as are references to additional sources of industry information. Two surveys on each industry are published each year.
Readers can purchase the Standard & Poor's Industry Surveys three ways: online for immediate download at http://sandp.ecnext.com , by telephone at 800-221-5277, or via e-mail order sent to william_kelleher@standardandpoors.com. Members of the media can request a copy from the communications contact listed at the end of this release.
Standard & Poor's analytic services are performed as entirely separate activities in order to preserve the independence of each analytic process. All non-public information received during any analytic process, including credit ratings, is held in confidence. Standard & Poor's analysts do not disclose non-public information outside of their specific analytic areas.
Standard & Poor's, a division of The McGraw-Hill Companies, Inc. (NYSE: MHP - News), is a leader in providing widely recognized financial data, analytical research and investment and credit opinions to the global capital markets. With 5,000 employees located in 19 countries, Standard & Poor's is an integral part of the world's financial architecture. Additional information is available at www.standardandpoors.com.
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Source: Standard & Poor's
Monday August 4, 10:58 am ET
NEW YORK, Aug. 4 /PRNewswire/ -- In a semi-annual survey of the oil and gas equipment and services industry, Standard & Poor's equity analyst covering the industry notes that, despite the environment of high prices for oil and natural gas that has existed since last year, only in recent months have these prices led to higher U.S. drilling activity. Natural gas drillers in particular, faced with high depletion rates from existing wells, are struggling to maintain existing production levels of a product whose demand has grown sharply in recent years. The survey, Industry Survey on Oil & Gas: Equipment & Services, is published twice yearly by Standard & Poor's, a leading provider of independent research, indices and ratings.
"With natural gas well depletion rates of almost 30% in most areas of the nation, it has been a major challenge to maintain, let alone increase, U.S. natural gas production," says John Kartsonas, Oil & Gas Equipment & Services Analyst, Standard & Poor's Equity Research Services, who authored the survey. "Standard & Poor's expects land drilling activity to increase throughout 2003, achieving utilization rates of nearly 87%. We also foresee land-drilling margins improving during the second half of the year. But so-called deep shelf production, from reservoirs deeper than 15,000 feet in the Gulf of Mexico's Outer Continental Shelf, may be one of the most attractive sources of additional natural gas supply," concludes Kartsonas.
'Industry Survey for the Oil & Gas: Equipment & Services Industry' looks at the issues affecting the main segments of the drilling and oilfield services industry. These include the boom-bust-boom energy cycle, field depletion rates, industry consolidation, and challenges in replacing experienced industry workers who were laid off during the last major downturn in 1998. The Survey also examines key industry statistics such as oil and natural gas prices, economic growth and demand, OPEC and non-OPEC production, rig counts and utilization rates, dayrates and daily margins, new rig construction, and exploration & production spending. In addition there is a look at key players in oilfield services, such as Baker Hughes, Halliburton and Schlumberger, and in drilling, such as Transocean, Noble and Nabors Industries.
Standard & Poor's Industry Surveys series, produced by its senior equity analysts, keeps a watchful eye on 51 U.S. industries, offering insights into trends and conditions that affect leading companies' market performance. Covering approximately 1,200 U.S. stocks, Standard & Poor's equity analysts have the largest U.S. equity research coverage count.
Standard & Poor's Industry Surveys provide a broad and fundamental overview of each industry's structure, its recent performance, and an analysis of trends that will influence it in the future. Each survey is organized into the following sections: Current Environment, Industry Profile/Industry Trends, How the Industry Operates, Key Industry Ratios and Statistics, How to Analyze a Company, Industry References, Comparative Company Analysis, and a Glossary of terms used in that industry. Both text and data are provided, as are references to additional sources of industry information. Two surveys on each industry are published each year.
Readers can purchase the Standard & Poor's Industry Surveys three ways: online for immediate download at http://sandp.ecnext.com , by telephone at 800-221-5277, or via e-mail order sent to william_kelleher@standardandpoors.com. Members of the media can request a copy from the communications contact listed at the end of this release.
Standard & Poor's analytic services are performed as entirely separate activities in order to preserve the independence of each analytic process. All non-public information received during any analytic process, including credit ratings, is held in confidence. Standard & Poor's analysts do not disclose non-public information outside of their specific analytic areas.
Standard & Poor's, a division of The McGraw-Hill Companies, Inc. (NYSE: MHP - News), is a leader in providing widely recognized financial data, analytical research and investment and credit opinions to the global capital markets. With 5,000 employees located in 19 countries, Standard & Poor's is an integral part of the world's financial architecture. Additional information is available at www.standardandpoors.com.
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Source: Standard & Poor's
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