Fitch: Rig Counts Remain Strong on High Commodity Prices.Business Editors CHICAGO--(BUSINESS WIRE)--July 25, 2003 Drilling activity in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. remained strong in the second quarter and the outlook for the remainder of 2003 is positive due to strong commodity prices, low inventories for both natural gas and oil and expanded capital budgets for a number of independent E&P companies. The outlook for international rig activity is modestly positive as well due to regained stability in the Middle East and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , offset by weakness in the North Sea according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. an article published in Fitch Ratings' new Oil & Gas Quarterly Newsletter, titled 'Drilling and Services Sector Remains Strong'. Fitch has left its price deck for crude and natural gas unchanged for 2003 and 2004, with a forecasted reversion to mid-cycle price levels for both commodities next year. Fitch continues to use an average for NYMEX See New York Mercantile Exchange. NYMEX See New York Mercantile Exchange (NYM). crude oil of $21 per barrel and Henry Hub gas of $3.50 per thousand cubic feet in 2004. For gas, expectations are that continued demand destruction, strong gas injections and more normal weather could push inventories above normal levels going into the winter. Although supply concerns continue from Iraq and Nigeria, continued growth in non-OPEC production combined with a tapping of other spare OPEC OPEC: see Organization of Petroleum Exporting Countries. OPEC in full Organization of the Petroleum Exporting Countries Multinational organization established in 1960 to coordinate the petroleum production and export policies of its capacity should provide adequate production to build-up global crude stocks. The Oil & Gas Insights newsletter is published quarterly and can be found on the Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. web site at 'www.fitchratings.com'. Other articles published in this issue of the newsletter include U.S. Refining Sector Down from Strong First Quarter, Better than 2002 and Mid-Cycle, Uncertainty Dogs Venezuelan Oil Recovery and Hydrocarbon Prices Firm Through 2003 and Possibly 2004. |
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