North American Rig Count Unchanged, Gas Rigs Hit Five-Month High
U.S. energy firms kept the combined land rig count steady...
U.S. energy firms kept the combined land rig count steady at 589 for the week ending December 13, unchanged from the prior week but still down 34 rigs, or 5%, compared to last year, according to Baker Hughes. Oil rigs remained at 482, while gas rigs rose by one to 103, their highest since July. The miscellaneous rig count was down 1.
In South Texas’ Eagle Ford shale, drillers cut two rigs, lowering the basin’s count to 46, the lowest since January 2022.
The rig count dropped 20% in 2023, reversing gains of 33% in 2022 and 67% in 2021, amid weaker energy prices, inflation-driven costs, and a corporate focus on financial discipline over production growth.
U.S. crude output is projected to rise from 12.9 million barrels per day (bpd) in 2023 to 13.2 million bpd in 2024 and 13.5 million bpd in 2025, per the EIA. Meanwhile, natural gas output is expected to decline to 103.2 billion cubic feet per day (bcfd) in 2024 from 2023’s record 103.8 bcfd, as reduced drilling activity begins to impact supply.
Oil futures are down 1% in 2024, while gas futures are up 30% after last year’s steep losses.
Stock market today: Wall Street ends mixed after a bumpy week
Stock indexes closed mixed on Wall Street at the end of a rare bumpy week. The S&P 500 ended...
Stock indexes closed mixed on Wall Street at the end of a rare bumpy week.
The S&P 500 ended unchanged Friday. The benchmark index reached its latest in a string of records a week ago. It lost ground for the week following three weeks of gains. The Dow Jones Industrial Average slipped 0.2%. The Nasdaq composite edged up 0.1%.
Broadcom surged after the semiconductor company beat Wall Street’s profit targets and gave a glowing forecast, highlighting its artificial intelligence products. RH, formerly known as Restoration Hardware, surged after raising its revenue forecast. Treasury yields rose in the bond market.
Oil up 2%, settles at 3-week high as more sanctions loom on Russia, Iran
Oil prices climbed about 2% on Friday to settle at a three-week high, on expectations...
Oil prices climbed about 2% on Friday to settle at a three-week high, on expectations that additional sanctions on Russia and Iran could tighten supplies and that lower interest rates in Europe and the U.S. could boost fuel demand.
Brent futures rose $1.08, or 1.5%, to settle at $74.49 a barrel. U.S. West Texas Intermediate crude rose $1.27, or 1.8%, to settle at $71.29.
That was Brent's highest close since Nov. 22 and put the contract up 5% for the week. WTI posted a 6% gain for the week and closed at its highest since Nov. 7.
"This strength is being driven by ... expectations of tighter sanctions against Russia and Iran, more supportive Chinese economic guidance, Mideast political havoc and prospects for a Fed (U.S. Federal Reserve) rate cut next week," analysts at energy advisory firm Ritterbusch and Associates said in a note.
Delek to Acquire Permian's Gravity Water Midstream for $285MM
Delek Logistics has bolstered its presence in the Permian...
Delek Logistics has bolstered its presence in the Permian Basin through an agreement to acquire Gravity Water Midstream in a deal combining cash and stock, totaling $285 million. This marks Delek's second acquisition of water infrastructure assets since September.
The deal was made public on Dec. 12, with an anticipated closure in the first quarter of 2025. Delek will pay $200 million in cash for Gravity Oilfield Services, with Gravity Water Midstream being one of its divisions. The remaining $85 million will be covered by issuing Delek shares.
Gravity's midstream operations span the Midland Basin in Texas and the Williston Basin in North Dakota, featuring over 200 miles of permanent pipeline and 46 saltwater disposal facilities, as per the press release.
Leading US oil players benefit from productivity gains
An Energy Information Administration analysis of 34 public US oil companies...
An Energy Information Administration analysis of 34 public US oil companies shows that well productivity gains have kept production costs steady at around $21 per barrel of oil equivalent since mid-2022, even as crude output rose by 21%. Improved efficiency has pushed average production to a record 13.1 million barrels per day in the first eight months of 2024 and enabled companies to continue to prioritize shareholder returns and debt reduction.
