2011 is looking like a great year for the Oil and Gas Industry. Many projects put on hold during the recession are kicking off again and new projects continue to be planned. Global demand for drilling rigs is at an all time high and countries like Libya, Brazil, Iraq and many others, continue to allow foreign companies to flood in.

As new fields are developed old fields are coming to the end of their life. Already lots of decommissioning projects are underway in the North Sea and Worldwide. High oil prices mean oil companies can offset the cost of decommissioning while continuing to expand into new areas.

New rigs are being ordered, new fields developed, old fields re-visited with new technology and the renewables industry is growing and swallowing up more of the oil and gas workforce as it does.

We know oil consumption is rising again.

Thanks to stronger-than-expected economic growth in Europe and Asia, OPEC has upped its oil consumption forecast for 2011. OPEC believes global consumption will reach nearly 87 million barrels per day next year.

Even the IEA raised its global oil demand forecast again — this time by 0.2 million barrels per day, which puts their projected 2011 demand to 88.5 million barrels per day. That’s compared with the 87.3 million barrels per day projected for 2010.

Although those levels are nothing to boast about, remember that production is still around 86 million barrels per day. Going forward, we can count on that gap widening.

So in 2011, it’s likely that we’ll see the return of $100/bbl oil.

But that certainly doesn’t mean oil prices will average $100 per barrel for the year. Making that mistake could be costly.

I’m guessing to see prices staying between $75-$90/bbl, a little higher than the $60-$85/bbl range we saw in 2010.

Hopefully 2011 is going to be a start to some great years ahead. Good luck to everyone and we look forward to having a great year with all of our customers!

Sincerely,

Frank Henry

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Frank Henry Equipment has been know in the Oil and gas industry as a name of excellence for over 25 years. The company employs  trained and knowledgable professionals who are able to give our clients the answers and products they’re looking for.  The Company is an industry leader in quickly manufacturing specialized tools or equipment. The focus here is to help our customers increase production & reduce costs by having put in place performance metrics to adhere to our customer’s expectations (quick deliveries and reduced cycle times on time critical orders). This flexibility is supported by being a solution driven company and understanding the customers needs by having the transparency and visibility in place to monitor conformance. Frank Henry Equipment has a well earned reputation for strict adherence to timeliness, data accuracy, and completeness. 

The employees at Frank Henry thrive  on an environment that is fast paced and on going. The infrastructure here is able to handle large volumes and takes an understanding of the challenges that are put forth so that we can get our customers what they need when they need it. We at Frank Henry Equipment work hard to earn your trust and will never take your business for granted.

So once again please feel free to go through our new site and contact us with any new/existing inquiries you need assistance on. We’re also available to take your call if you just have a question or concern about something.

Thank you for visiting and we look forward to doing new or continuing business with you.

Regards,
Frank Henry