U.S. Oil and Gas Rig Count Rebounds Following Slowdown in 2009
The U.S. rotary rig count had increased by 538 in early May, which was nearly 60 percent higher than for the same period last year, according to industry sources that monitor drilling rigs actively exploring for or developing oil or natural gas. Year-over-year oil exploration in the U.S. was up 161.7 percent, while gas exploration increased 29.3 percent.
“Last year was a very depressed market because of falling commodity prices,” recalled Gary Zinn, sales director, Industrial Markets for Tnemec Company, Inc. “Now that we have higher commodity prices, inland drilling activity has intensified and the rig count is up significantly.”
Inland drilling could remain strong based on published reports of massive supplies of natural gas in shale rock, which has spurred drilling worldwide. According to a recent report in The Wall Street Journal, “By some estimates, there’s 1,000 trillion cubic feet recoverable in North America alone – enough to supply the nation’s natural-gas needs for the next 45 years.”
The Journal reports that about 25 trillion cubic feet of shale gas in North America has been produced or placed into proven reserves, leaving large areas to be explored and drilled.
With the current resumption of drilling activity, Zinn anticipates increased market demand for maintenance supplies, such as lubricants, pressure valves, sections of pipe, seals, gaskets, connections and industrial coatings provided by oilfield supply houses. These supply houses have grown in size and number over the past several decades, spurred by the emergence of large regional, national and international parent companies with multiple locations and highly specialized inventories that resemble huge hardware stores.
Over the years, Tnemec has developed protective coatings for every surface encountered in the oil and gas industry, from concrete to steel and galvanized metal. Specific products range from industrial alkyd enamels and acrylics to high-performance epoxies, zinc-rich primers and polyurethanes. Quick-cure coatings are available that can be applied in lower temperatures, as well as a new generation of coatings designed to meet changing government standards for low volatile organic compounds (VOCs).
Series 2HS Low VOC Tneme-Gloss, a high-gloss industrial alkyd, is a new industrial coating available from oilfield stocking distributors for use on steel rigs. “The 2HS is a very high solids version of Series 2H Hi-Build Tneme-Gloss,” Zinn explained. “It’s VOC compliant anywhere in North America except the Los Angeles basin, and is available in all oil field standard colors.”
“Ease of application and performance on marginally prepared surfaces is especially important to the people who maintain these drilling rigs on-site,” Zinn added. “Product availability is also important. Each drilling rig manufacturer has its own color designation, so it’s critical to have the right products in the right colors available at a moment’s notice in case a rig goes down and it needs immediate attention.”
At recent meetings in Houston, Zinn found a mood of optimism he has not seen for several months. “The oilfield is a very cyclic market,” Zinn added. “It’s strong for several years and then the bottom drops out. We’ve gone through two or three of these cycles since the late 1980s, but now it’s starting to come back around.”
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