An estimated $153.7 billion was invested in drilling
approximately 46,736 oil and natural gas wells in 2012,
according to APIs 2012 Joint Association Survey on
The investment represents a 23.1% increase over 2011 levels.
The US oil and natural gas revolution is gathering
momentum, as companies invest more into domestic production
and expand our ability to supply Americas energy
needs, said Hazem Arafa, API statistics director.
Companies are opening more oil and gas wells, with a
rising share of new investment devoted to exploration and
production of oil, both onshore and offshore.
The total number of new wells increased by 5.8% from 2011
levels. Expenditures on oil represented 61.1% of all drilling
costs in 2012, up from 49.3% in 2011. Gas expenditures
accounted for 30.7% of costs, down from 44.2% in 2011.
Natural gas production remains at historic highs, but
were seeing that new production is following the
market, where the demand for oil is driving growth,
said Arafa. Each dollar spent means more jobs, more
production and more abundant energy to fuel Americas
manufacturing and economic renaissance.
The report also shows that expenditures on shale drilling
represented 34.6% of costs, down from 52.5% in 2011. Most of
the decline occurred in natural gas drilling, while the
number of new shale oil wells increased from 3,414 in 2011 to
3,619 in 2012. The total investment in offshore production
also increased from 6.5% of all domestic oil and gas
production expenditures in 2011 to 7.1% in 2012.
APIs 2012 Joint Association Survey on Drilling Costs is
available through APIs primary distributor, Information
Handling Services (IHS).