Table of Contents Table of Contents
Previous Page  59 / 110 Next Page
Information
Show Menu
Previous Page 59 / 110 Next Page
Page Background

World Oil Supply

OPEC Monthly Oil Market Report – September 2017

51

Table 5 - 6: US rotary rig count on 8 September 2017

North American oil & gas industry

offer support for NAFTA ahead of renegotiation

The American Petroleum Institute (API), Canadian Association of Petroleum Producers (CAAP) and the

Mexican Association of Hydrocarbon Companies (AMEXHI) released a joint paper in August, highlighting

their policy positions on further strengthening the competitiveness of the North American energy industry

under the North American Free Trade Agreement (NAFTA).

“The natural gas and oil industry across North America is united in our support for NAFTA and the

significant consumer, economic and security benefits it generates,” said API President and CEO Jack

Gerard. “As the energy flows between our countries continue to grow, it’s important to highlight the critical

role NAFTA has played in facilitating cross-border trade and investment in energy.” He added that the

energy trade alliance under NAFTA supports jobs and manufacturing in energy.

The US administration has called for renegotiating NAFTA, which entered into force in 1994, stepping back

from an initial plan to terminate the agreement.

The paper notes the dramatic changes that have taken place in the North American energy industry since

NAFTA entered into force in 1994. This includes the surge in US oil and gas production led by the shale

industry, the opening up of Mexico’s energy sector to foreign and domestic private investment for the first

time in over seventy-five years, and the developments in Canada’s energy infrastructure, oil sands sector,

and liquefied natural gas (LNG) production.

The paper supports a number of specific policy positions, particularly preserving NAFTA’s elimination of

tariffs in the trade of crude oil, natural gas, and refined products, as well as other goods supporting energy

exploration.

Other policy aims include preserving regulatory cooperation and allowing for fully liberalized trade across

North America. It also highlights the support for preserving provisions for investment protections and dispute

settlement, including rules that restrict expropriation of investments and provide for timely and adequate

compensation when expropriation occurs.

On 5 September, trade representatives from the three countries completed the second round of NAFTA

renegotiations, following five days of meetings in Mexico City, Mexico. According to an official joint

statement, “the renegotiating process is expected to complete “towards the end of this year”.

8 Sep 17 Month ago Year ago M-o-m Y-o-y Y-o-y, %

Oil and gas split

Oil

756

765

414

-9

342

83%

Gas

187

189

92

-2

95

103%

Location

Onshore

928

937

490

-9

438

89%

Offshore

16

17

18

-1

-2

-11%

Basin

Williston

53

53

28

0

25

89%

Eagle Ford

73

78

38

-5

35

92%

Permian

382

379

200

3

182

91%

Drilling trajectory Directional

76

74

48

2

28

58%

Horizontal

793

807

396

-14

397

100%

Vertical

75

73

64

2

11

17%

US total rig count

944

954

508

-10

436

86%

Sources: Baker Hughes and OPEC Secretariat.

Change