Plans for the better.

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Third largest integrated energy company in the U.S. and the fifth largest refiner in the world ConocoPhilips, said it is planning to add drilling rigs in 2017 in essential shale acreage in the United States, because it expects a recovery in the price of crude oil. Conoco, after cutting its asset spending plan nearly 30 percent this year, to $11.5 billion, told investors it expected to increase the number of rigs in its Eagle Ford acreage in South Texas to 12 in 2017 from an average of 7 this year. In North Dakota’s Bakken, the rigs will double to 10 in the same period. Theese bold steps stem from the belief in the long-term viability of drilling for shale oil.  As we all know oil&gas industry is cyclical, it runned high over the last decade but when oil prices tumbled down 50 percent since June, to about $50 a barrel it, declined. Conoco’s chief executive, Ryan Lance, said that price recovery was likely to be “volatile”.

Source: http://www.nytimes.com

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