And oil-field service provider Baker Hughes Inc. said last week that the total number of active rigs currently operating in North America, both onshore and off, is lower than at any point since January 2004.

Despite the statistics, industry officials say they are committed to developing the fields.

"Deep water is going to be where it is," said Pete Miller, CEO of National Oilwell Varco, yesterday at the Howard Weil Energy Conference, according to the Associated Press.

Pulsipher agreed, describing Miller's statement as a common industry understanding.

"The conventional wisdom is that if and when the economy recovers, oil prices will continue to rise, and [the companies] expect to – and will – make money on the plays coming on line," he said.

Reprinted from Greenwire with permission from Environment & Energy Publishing, LLC. www.eenews.net, 202-628-6500

Comments