Oil & Gas News

U.S. Rig Count Gains Momentum

Rig Count, rig

By: Scott DiSavino – Reuters – U.S. drillers this week added oil and natural gas rigs for an 11th week in a row for the first time since June 2017 as crude prices hit pre-pandemic highs.

The U.S. oil and gas rig count, an early indicator of future output, rose by eight to 392 in the week to Feb. 5, the highest since May, according to data on Friday from energy services firm Baker Hughes Co.

Despite rising for six months in a row, that count is still 398 rigs, or 50%, below this time last year. The total count, however, has soared since hitting a record low of 244 in August, according to Baker Hughes data going back to 1940.

U.S. oil rigs rose four to 299 this week, also their highest since May, while gas rigs rose four to 92, their highest since April, according to Baker Hughes data.

Coronavirus travel restrictions last year crushed oil demand and prices, but U.S. crude futures climbed over $57 a barrel this week, their highest since January 2020.

The pace of recovery in output in the world’s top producer, however, is slow. The government this week projected U.S. crude output will not top its 2019 record of 12.25 million barrels per day until 2023. Production in 2020 tumbled 6.4% to 11.47 million BPD.

Looking forward, U.S. crude futures were only trading around $55 a barrel for the balance of 2021 and $51 for calendar 2022, which could prompt some producers to reduce activity in the future.

Most energy firms plan to continue cutting spending for the third year in a row in 2021 as they keep focusing on improving earnings rather than increasing output.

U.S. financial services firm Cowen & Co said the 45 independent exploration and production (E&P) companies it tracks plan to cut spending by about 6% in 2021 versus 2020. That follows CAPEX reductions of roughly 48% in 2020 and 12% in 2019.

The crossroads of energy information for minerals owners in Oklahoma. Where you can: See recent prices of mineral and lease transactions. Receive an offer to lease or buy your minerals.

Find relevant news stories on the most active areas, including the Scoop and Stack Plays.

Data Powered by Oseberg

Today’s E&P world is rapidly shifting towards data-driven decision making, but those decisions are only as good as the data behind them. Access Oseberg's deep, accurate, and detailed pool of insight-rich industry data with our powerful analytical and search tools and get the clearest picture of what's happening as soon as it happens.

Disclaimer

This web site is maintained solely for the personal use of our visitors. Although we at Oklahoma Minerals have made all reasonable efforts to provide accurate information, we cannot guarantee the completeness, timeliness or accuracy of the information contained herein. Nothing in this web site contains investment advice. Any decisions based upon the information contained in this web site are the sole responsibility of the user.

Copyright © 2021 OklahomaMinerals.com

To Top
Texas Electricity Firm Files For Bankruptcy After Winter Storm BlackoutsRead More