Rig count rises but is still down 7% year-over-year

The U.S. rig count rose by one in the last week to 509 as of April 14, according to Enverus Rig Analytics. The count is up 5% in the last month but down 7% year-over-year.

Both the Anadarko and Denver-Julesburg basins have seen rig counts recover to 2020 levels. Meanwhile, the Gulf Coast Basin is up 53% year-over-year, but the rig count is still below pre-coronavirus pandemic levels. The Permian Basin is also still down 24% year-over-year and the Williston Basin is down about 61%

WTI crude futures in the U.S. were up about 6% so far this month after gaining 65% over the prior five months as oil demand recovers from being crushed by the COVID-19 pandemic about a year ago. With prices mostly rising since October 2020, some energy firms plan to boost spending slightly in 2021 after cutting drilling and completion expenditures over the past two years.

Any spending increase, however, remains small as most firms continue to focus on boosting cash flow, reducing debt and increasing shareholder returns rather than adding output.

Oil output from seven major shale formations was expected to rise for a third straight month, climbing by about 13,000 bbl/d in May to 7.61 million bbl/d, the Energy Information Administration said on April 12.

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