Section 5. Crude Oil and Natural Gas Resource Development

Section 5. Crude Oil and Natural Gas Resource Development The September 4 rotary rig count was 1,4, slightly higher than the count in August 4 and 13 percent higher than the count in September 3. Of the total number of rigs in operation, 1,148 were onshore and 9 were offshore. For September 4, the number of onshore rigs was up 17 percent but the number of offshore rigs was down 16 percent from the September 3 count. Rotary rigs drilling for natural gas as a share of total rigs stood at 87 percent in September 4. Total footage drilled in September 4 was 16. million feet, 6 percent lower than the footage drilled in August 4 but up 1 percent from that drilled in September 3. The number of exploratory and development crude oil and natural gas wells drilled during September 4 was,4, down 6 percent from the number drilled in August 4 but up 6 percent from the number drilled in September 3. The number of crude oil wells drilled was 471, and the number of natural gas wells was 1,99, percent higher and 8 percent higher, respectively, than their September 3 levels. The number of dry holes drilled in September 4 was 41, down 6 percent from the number drilled in August 4 but up 4 percent from the number drilled in September 3. There were.1 thousand well service rigs active in September 4, 1 percent lower than the previous month but 6 percent more than the count a year ago. The number of seismic crews active in the 48 States onshore in September 4 was 4, 1 more than a year earlier. The number of crews active in the 48 States offshore was 6, 3 fewer than a year earlier. Two crews were active in Alaska in September 4, more than a year ago. Energy Information Administration/Monthly Energy Review October 4 81

Figure 5.1 Crude Oil and Natural Gas Resource Development Indicators Active Well Service Rig Count 3 Rotary Rigs in Operation 15 Thousands of Units 1 4 3 Hundreds of Rigs 1 9 6 4 3 3 Wells Drilled Footage Drilled 4 5 Thousand Wells 3 4 3 Million Feet 15 1 4 3 1 5 Wells Drilled by Type Maximum U.S. Active Seismic Crew Counts.5. 1.8 1.9 September September 3 September 4 5 4 37 4 September September 3 September 4 Thousand Wells 1.5 1. 1.4 Number of Crews 3 3 17.5..5.5.5.3.4.4 Crude Oil Natural Gas Dry Wells Wells Wells 1 48 States, Onshore 9 48 States, Offshore a 6 Alaska b a Federal and State Jurisdiction waters of Gulf of Mexico. b All onshore. Sources: Tables 5.1-5.3. 8 Energy Information Administration/Monthly Energy Review October 4

Table 5.1 Crude Oil and Natural Gas Drilling Activity Measurements Rotary Rigs in Operation a By Site By Objective Onshore Offshore Crude Oil Natural Gas Total b Total Footage Drilled c Active Well Service Rig Count d Average Thousand Feet Number 1973 Average... 1,11 84 NA NA 1,194 138,3 NA 1974 Average... 1,378 94 NA NA 1,47 153,374 NA 1975 Average... 1,554 16 NA NA 1,66 18,494 NA 1976 Average... 1,59 19 NA NA 1,658 186,98 NA 1977 Average... 1,834 167 NA NA,1 15,866 NA 1978 Average...,74 185 NA NA,59 38,669 NA 1979 Average... 1,97 7 NA NA,177 44,798 NA 198 Average...,678 31 NA NA,99 314,654 NA 1981 Average... 3,714 56 NA NA 3,97 413,11 NA 198 Average...,86 43 NA NA 3,15 378,95 NA 1983 Average...,33 199 NA NA,3 317,986 NA 1984 Average...,15 13 NA NA,48 371,39 NA 1985 Average... 1,774 6 NA NA 1,98 313,45 NA 1986 Average... 865 99 NA NA 964 181,856 NA 1987 Average... 841 95 NA NA 936 16,178 NA 1988 Average... 813 13 554 354 936 156,354 NA 1989 Average... 764 15 453 41 869 134,439 NA 199 Average... 9 18 53 464 1,1 153,71 NA 1991 Average... 779 81 48 351 86 143,1 NA 199 Average... 669 5 373 331 71 11,14 NA 1993 Average... 67 8 373 364 754 135,118 NA 1994 Average... 673 1 335 47 775 14,89 NA 1995 Average... 6 11 33 385 73 117,83 NA 1996 Average... 671 18 36 464 779 19,45 NA 1997 Average... 81 1 376 564 943 156,661 NA 1998 Average... 73 13 64 56 87 143,454 NA 1999 Average... 519 16 18 496 65 99,41 NA Average... 778 14 197 7 918 141,39 NA 1 Average... 1,3 153 17 939 1,156 189,967 NA January... 741 16 141 75 867 11,513 1,683 February... 7 13 144 679 85 11,31 1,843 March... 649 114 144 617 763 1,33 1,791 April... 645 15 136 61 75 1,1 1,85 May... 71 15 134 69 86 11,39 1,856 June... 73 11 138 74 84 11,74 1,83 July... 74 111 133 716 851 11,59 1,83 August... 737 111 15 71 848 1,78 1,891 September... 746 114 1 736 86 1,41 1,861 October... 74 111 14 79 851 11,97 1,878 November... 75 19 146 683 834 11,61 1,817 December... 74 114 137 714 856 1,747 1,81 Average... 717 113 137 691 83 138,31 1,83 3 January... 743 111 13 718 854 1,96 1,898 February... 797 11 153 75 97 1,866 1,98 March... 836 15 171 767 941 13,69 1,95 April... 877 16 185 795 983 14,49 1,954 May... 91 113 167 864 1,34 14,515 1,97 June... 958 19 15 91 1,67 15,8 1,957 July... 974 17 153 94 1,81 15,637,16 August... 979 111 153 93 1,9 15,776,6 September... 984 19 154 936 1,93 15,796 1,966 October... 997 15 158 941 1,1 16,156,64 November... 1,5 16 158 95 1,111 16,37 1,973 December... 1,1 14 153 959 1,114 16,31 1,946 Average... 94 18 157 87 1,3 177,74 1,967 4 January... 1,1 1 143 955 1,11 16,35,19 February... 1, 99 153 961 1,119 15,373,43 March... 1,41 94 164 968 1,135 15,675,47 April... 1,58 93 154 996 1,151 15,88,5 May... 1,68 96 156 1,7 1,164 16,6,95 June... 1,8 96 164 1,11 1,176 16,411,67 July... 1,116 97 17 1,41 1,13 16,679,68 August... 1,139 95 17 1,63 1,34 16,958,16 September... 1,148 9 166 1,73 1,4 15,967,78 9-Month Average... 1,75 96 16 1,9 1,171 145,184,64 3 9-Month Average... 896 19 157 844 1,4 18,31 1,958 9-Month Average... 71 113 135 688 85 1,44 1,87 a Rotary rigs in operation are reported weekly. Monthly data are averages of 4- or 5-week reporting periods, not calendar months. Multi-month data are averages of the reported data over the covered months, not averages of the weekly data. Annual data are averages over 5 or 53 weeks, not calendar years. Published data are rounded to the nearest whole number. b Sum of rigs drilling for crude oil, rigs drilling for natural gas, and other rigs (not shown) drilling for miscellaneous purposes, such as service wells, injection wells, and stratigraphic tests. c Values shown are totals. d See Glossary. NA=Not available. Note: Geographic coverage is the 5 States and the District of Columbia. Sources: Rotary Rigs in Operation: By Site - Baker Hughes, Inc., Houston, Texas, Rotary Rigs Running--by State. By Type - Baker Hughes, Inc., Houston, Texas, weekly phone recording. Total Footage Drilled: Energy Information Administration computations, which are based on well reports submitted to the American Petroleum Institute by the Petroleum Information Corporation, Denver, Colorado. Active Well Service Rig Count: Weatherford International, Inc., Houston, Texas. Energy Information Administration/Monthly Energy Review October 4 83

Table 5. Crude Oil and Natural Gas Wells Drilled (Number of Wells) Exploratory Development Total Crude Oil Natural Gas Dry Total Crude Oil Natural Gas Dry Total Crude Oil Natural Gas Dry Total 1973 Total... 64 1,67 5,95 7,661 9,55 5,866 4,368 19,759 1,167 6,933 1,3 7,4 1974 Total... 859 1,19 6,833 8,88 1,788 5,948 5,83 4,19 13,647 7,138 1,116 3,91 1975 Total... 98 1,48 7,19 9,359 15,966 6,879 6,517 9,36 16,948 8,17 13,646 38,71 1976 Total... 1,86 1,346 6,77 9,4 16,6 8,63 6,986 31,651 17,688 9,49 13,758 4,855 1977 Total... 1,164 1,548 7,83 9,995 17,581 1,574 7,7 35,857 18,745 1,1 14,985 45,85 1978 Total... 1,171 1,771 7,965 1,97 18,1 1,64 8,586 39,38 19,181 14,413 16,551 5,145 1979 Total... 1,31 1,97 7,437 1,665 19,53 13,347 8,66 41,539,851 15,54 16,99 5,4 198 Total... 1,764,81 9,39 1,884 3,875 15,5 11,599 57,76 3,639 17,333,638 7,61 1981 Total...,636,514 1,349 17,499 4,96 17,65 15,44 74,54 43,598,166 7,789 91,553 198 Total...,431,15 11,47 15,83 36,768 16,854 14,97 68,594 39,199 18,979 6,19 84,397 1983 Total...,3 1,593 1,148 13,764 35,97 1,971 14,5 6,73 37,1 14,564 4,153 75,837 1984 Total...,198 1,51 11,78 14,997 4,47 15,66 14,43 7,416 4,65 17,17 5,681 85,413 1985 Total... 1,679 1,19 8,94 11,793 33,439 1,978 1,13 58,549 35,118 14,168 1,56 7,34 1986 Total... 1,84 793 5,549 7,46 18,13 7,73 7,19 3,865 19,97 8,516 1,678 4,91 1987 Total... 95 754 5,49 6,78 15,39 7,31 6,63 8,63 16,164 8,55 11,11 35,331 1988 Total... 855 743 4,693 6,91 1,781 7,81 5,348 5,941 13,636 8,555 1,41 3,3 1989 Total... 67 75 3,94 5,36 9,597 8,834 4,64,695 1,4 9,539 8,188 7,931 199 Total... 654 689 3,715 5,58 11,544 1,355 4,598 6,497 1,198 11,44 8,313 31,555 1991 Total... 59 534 3,314 4,44 11,178 8,99 4,8 4,45 11,77 9,56 7,596 8,89 199 Total... 493 43,513 3,49 8,64 7,786 3,65 19,655 8,757 8,9 6,118 3,84 1993 Total... 5 548,469 3,519 7,95 9,469 3,859 1,33 8,47 1,17 6,38 4,75 1994 Total... 57 76,45 3,71 6,151 8,81,9 17,865 6,71 9,538 5,37 1,566 1995 Total... 54 57,198 3,31 7,85 7,784,877 17,746 7,67 8,354 5,75 1,56 1996 Total... 483 57,136 3,189 7,831 8,73 3,146 19,79 8,314 9,3 5,8,898 1997 Total... 48 536,11 3,74 1,8 1,791 3,59 4,391 1,436 11,37 5,7 7,465 1998 Total... 91 54 1,647,44 6,773 1,64 3,193,66 7,64 11,144 4,84 3,48 1999 Total... 157 539 1,195 1,891 4,19 1,338,17 16,574 4,176 1,877 3,41 18,465 Total... 64 6 1,88,154 7,94 15,853,737 5,684 7,358 16,455 4,5 7,838 1 Total... 3 988 1,669,979 7,738 1,95,415 31,48 8,6,83 4,84 34,7 January... 15 6 18 183 513 1,38 7,48 58 1,388 315,31 February... 16 7 13 191 418 1,31 148 1,797 434 1,33 51 1,988 March... 19 6 96 177 416 1,16 185 1,77 435 1,188 81 1,94 April... 9 39 94 16 459 1,14 18 1,783 488 1,181 76 1,945 May... 4 48 13 175 447 1,87 199 1,933 471 1,335 3,18 June... 18 49 86 153 59 1,31,61 547 1,359 38,14 July... 45 97 164 5 1,33 14,59 544 1,368 311,3 August... 14 59 15 178 54 1,53,7 554 1,589 35,448 September... 18 61 16 185 44 1,349 3 1,99 458 1,41 39,177 October... 13 58 13 194 57 1,3 186,58 585 1,358 39,5 November... 3 56 97 176 516 1,5 158 1,96 539 1,38 55,1 December... 5 1 19 455 1,318 187 1,96 475 1,368 39,15 Total... 31 659 1,4,13 5,87 15,496,91 3,614 6,58 16,155 3,531 5,744 3 January... 3 49 16 178 58 1,36,56 551 1,375 38,34 February... 7 35 68 13 434 1,113 157 1,74 461 1,148 5 1,834 March... 46 68 136 493 1,43 16,76 515 1,469 8,1 April... 1 65 9 178 61 1,458 11,9 64 1,53 33,468 May... 53 91 166 67 1,61 197,45 649 1,654 88,591 June... 35 53 98 186 63 1,69 184,56 667 1,743 8,69 July... 17 76 133 6 444 1,694 55,393 461 1,77 388,619 August... 17 77 134 8 444 1,78 57,49 461 1,785 391,637 September... 17 77 131 5 447 1,716 56,419 464 1,793 387,644 October... 18 78 13 8 458 1,74 58,44 476 1,8 39,668 November... 18 78 134 3 458 1,745 6,463 476 1,83 394,693 December... 17 79 134 3 444 1,758 6,46 461 1,837 394,69 Total... 54 766 1,31,341 6,3 18,956,657 7,643 6,84 19,7 3,978 9,984 4 January... 16 79 13 7 415 1,75 56,41 431 1,89 388,648 February... 17 79 134 3 444 1,76 61,467 461 1,841 395,697 March... 1 8 136 37 473 1,774 66,513 494 1,854 4,75 April... 17 8 138 37 453 1,86 7,549 47 1,98 48,786 May... 81 137 38 487 1,848 7,65 57 1,99 47,843 June... 81 139 4 511 1,855 73,639 531 1,936 41,879 July... 83 141 44 493 1,911 78,68 513 1,994 419,96 August... 85 144 49 493 1,951 8,76 513,36 46,975 September... 18 81 135 34 453 1,848 66,567 471 1,99 41,81 9-Month Total... 169 731 1,36,136 4, 16,55,4 3,169 4,391 17,56 3,658 5,35 3 9-Month Total... 1 531 91 1,653 4,67 13,79 1,879,78 4,871 14,6,8 1,931 9-Month Total... 175 495 898 1,568 4,84 11,66 1,76 17,67 4,459 1,11,658 19,38 Notes: These well counts include only the original drilling of a hole intended to discover or further develop already discovered crude oil or natural gas resources. Other drilling activities, such as drilling an old well deeper, drilling of laterals from the original well, drilling of service and injection wells, and drilling for resources other than crude oil or natural gas are excluded. Due to the methodology used to estimate ultimate well counts from the available partially reported data, the counts shown on this page are frequently revised. See notes at end of section. Geographic coverage is the 5 States and the District of Columbia. Sources: 1973-1994: Energy Information Administration (EIA), computations based on well reports submitted to the American Petroleum Institute. 1995 forward: EIA computations based on well reports submitted to the Information Handling Services Energy Group, Inc. 84 Energy Information Administration/Monthly Energy Review October 4

Table 5.3 Maximum U.S. Active Seismic Crew Counts (Number of Crews) 48 States, Onshore 48 States, Offshore a Alaska b Dimensions c Dimensions c Dimensions c 3 4 Total d 3 4 Total d 3 4 Total d Total March... 4 36 1 41 7 11 19 1 1 6 April... 4 36 1 41 7 11 19 1 3 63 May... 3 34 1 38 6 11 18 1 3 59 June... 5 37 1 43 7 9 17 1 3 63 July... 4 39 1 44 6 6 13 1 1 58 August... 4 4 1 45 7 7 15 1 1 61 September... 3 39 1 43 7 8 16 59 October... 4 41 1 46 7 9 17 63 November... 4 4 1 46 7 8 16 6 December... 5 41 1 48 8 8 17 65 1 January... 5 38 1 44 9 7 17 61 February... 6 38 1 45 8 7 16 61 March... 6 38 1 45 9 9 18 63 April... 7 39 1 47 9 9 18 65 May... 7 37 1 45 9 8 17 1 1 64 June... 6 35 1 4 9 7 16 1 1 6 July... 6 35 1 4 8 8 16 58 August... 8 3 1 41 7 8 15 56 September... 8 3 1 39 6 9 15 54 October... 5 33 1 39 9 1 19 58 November... 7 34 1 4 7 1 17 59 December... 7 33 1 41 8 9 17 58 January... 6 3 38 8 6 14 1 1 54 February... 9 31 4 9 6 15 1 1 57 March... 9 6 35 1 7 17 1 1 54 April... 7 5 3 9 7 16 1 1 5 May... 8 4 3 9 8 17 1 1 51 June... 9 3 3 9 7 16 1 1 5 July... 8 6 34 8 8 16 1 1 5 August... 7 6 33 8 7 15 1 1 5 September... 9 8 37 1 7 17 1 1 56 October... 8 3 38 1 7 17 1 1 57 November... 8 7 35 8 5 13 1 1 5 December... 8 31 7 4 11 1 1 43 3 January... 8 19 1 8 8 4 1 4 February... 9 9 8 4 1 41 March... 8 8 7 4 11 1 1 41 April... 7 7 7 4 11 1 1 4 May... 7 17 4 8 4 1 1 1 38 June... 7 18 5 8 4 1 1 1 39 July... 7 1 8 7 4 11 1 1 41 August... 8 3 7 4 11 1 1 43 September... 8 3 7 9 39 October... 7 4 31 5 3 8 39 November... 7 4 31 4 3 7 38 December... 7 5 3 5 5 1 4 4 January... 8 5 33 5 5 1 43 February... 8 7 35 5 5 1 45 March... 8 7 35 5 5 1 45 April... 9 7 36 5 4 9 45 May... 9 6 35 5 4 9 44 June... 9 3 39 4 4 8 49 July... 8 3 38 4 4 8 48 August... 8 31 39 4 4 8 49 September... 8 3 4 4 6 48 a Federal and State Jurisdiction waters of the Gulf of Mexico. b All onshore. c In two-dimensional (D) reflection seismic surveying both the sound source and the sound detectors (numbering up to a hundred or more per shot) are moved along a straight line. The resultant product can be thought of as a vertical sonic cross-section of the subsurface beneath the survey line. It is constructed by summing many compressional (pressure) wave reflections from the various sound source and sound detector locations at the halfway sound path points beneath each location (common depth point stacking). In three-dimensional (3D) reflection seismic surveying the sound detectors (numbering up to a thousand or more) are spread out over an area and the sound source is moved from location to location through the area. The resultant product can be thought of as a cube of common depth point stacked reflections. Advantages over D include the additional dimension, the fact that many more reflections are available for stacking at each point, which provides greatly improved resolution of subsurface features, and elimination of the "ghost" or "side swipe" reflections from nearby offline features that D surveys are prone to (except, of course, along the outer faces of the cube). Four dimensional (4D) reflection seismic surveying is the exact repetition of a 3D survey at two or more time intervals. The primary application of 4D is mapping the movement of fluid interfaces in producing oil and gas reservoirs. d Includes crews with unknown survey dimension. Notes: A "seismic crew" is a group of people, of varying number, engaged in a seismic surveying job. "48 States" is the United States excluding Alaska and Hawaii. Data are reported on the first and fifteenth of each month, except January when they are reported only on the fifteenth. When semi-monthly values differ for the month, the larger of the two values is shown here. Consequently this table reflects the maximum number of crews at work at any time during the month. Source: World Geophysical News, IHS Energy Group, Denver, CO. used with permission. Energy Information Administration/Monthly Energy Review October 4 85

Crude Oil and Natural Gas Resource Development Table 5. Notes Three well types are considered in the Monthly Energy Review (MER) drilling statistics: completed for crude oil, completed for natural gas, and dry hole. Wells that productively encounter both crude oil and natural gas are categorized as completed for crude oil. Both development wells and exploratory wells (new field wildcats, new pool tests, and extension tests) are included in the statistics. All other classes of wells drilled in connection with the search for producible hydrocarbons are excluded. Prior to the March 1985 MER, drilling statistics consisted of completion data for the above types and classes of wells as reported to the American Petroleum Institute (API) during a given month. Due to time lags between the date of well completion and the date of completion reporting to the API, as-reported well completions proved to be an inaccurate indicator of drilling activity. During 198, for example, as-reported well completions rose, while the number of actual completions fell. Consequently, the drilling statistics published since the March 1985 MER are Energy Information Administration (EIA) estimates produced by statistically imputing well counts and footage based on the partial data available from the API. These estimates are subject to continuous revision as new data, some of which pertain to earlier months and years, become available. Additional information about the EIA estimation methodology may be found in Estimating Well Completions, the feature article published in the March 1985 MER. Users of the well completion and footage figures published by the Energy Information Administration (EIA) prior to August 1998 should be aware that these data have been revised. The published well completion and footage figures are produced by the Well Completion Estimation Procedure (WELCOM) based on drilling records provided under contract to the EIA. Problems in the files received by EIA necessitated revision of the historical series for well completions and footage drilled. Queries regarding this matter may be directed to William Trapmann (-586-648 or william.trapmann@eia.doe.gov). 86 Energy Information Administration/Monthly Energy Review October 4