US Q2 exploratory drilling activity up 53 percent from year ago

Cathy Landry | 202.682.8122| landryc@api.org

WASHINGTON – It is estimated that U.S. oil and natural gas companies completed over 50 percent more exploratory wells in the second quarter of 2008 than they did in the corresponding period a year ago, as the industry continues to boost activity in the exploration and production sector, according to API’s second-quarter drilling estimates.

“The year-to-year increase in exploratory drilling demonstrates the industry’s resolve to explore for and find the oil and natural gas needed to keep our nation going strong,“ said Hazem Arafa, director of API’s statistics department. “This is remarkable considering the limited access our industry has to the nation’s oil and natural gas resources.”

Total estimated exploratory well completions, which accounted for nearly 17 percent of total estimated well completions, increased 53 percent in the second quarter compared with the same quarter last year, API said in its 2008 Quarterly Well Completion Report: Second Quarter.  Estimated exploratory oil well completions increased 49 percent, while estimated exploratory natural gas wells completions jumped 99 percent in the second quarter of 2008, compared with last year’s second quarter.

An estimated 14,289 oil wells, natural gas wells and dry holes were completed in the second quarter of 2008, up 8 percent from the second quarter a year ago, the report found. 

API’s estimates show that the resurgence in oil well completion activity that began in 2000 is continuing into 2008. An estimated 5,219 oil wells were completed in the second quarter of 2008, up 17 percent from last year’s second quarter and the highest second quarter estimated oil activity since 1986.

Natural gas continues to be the primary target for domestic drilling, with an estimated 7,561 natural gas wells completed in the second quarter of 2008. That was up 3 percent from last year’s second quarter and over double the drilling activity of a decade ago. 

API also reported total estimated footage of 89,947,000 feet drilled in the second quarter of 2008, a 14 percent increase from second quarter 2007 and the highest estimated second quarter footage drilled ever.

The API Quarterly Well Completion Report is available for an annual subscription from API, Publications and Distribution Section ORDER DESK, 1220 L Street, N.W., Washington D.C. 20005.  Telephone (202) 682-8499.  Fax: (202) 962-4730. The report also is available from Jeff Obermiller at 202-682-8508 or through API’s Internet-based on-line services, ACCESS* API or API DATA.  For information, contact ACCESS* API or API DATA at (202) 682-8511.