Quarterly Rig Count Best Since 2017

For the sixth consecutive week, U.S. energy firms this week added oil and gas rigs for the best quarter since second-quarter 2017.

According to Baker Hughes Co., the oil and gas rig count rose by about three rigs in the week to Dec. 30. For the quarter, the count was up 90, the most in a quarter since second-quarter 2017 when it rose by 116 rigs. The overall rig count for the year was down 454. However, the current surge began in August 2020.

U.S. oil rigs rose to 267 this week, their highest since May, while gas rigs remain unchanged at 83, their highest since the end of April, according to Baker Hughes. Year-to-date, the total number of oil and gas rigs active in the U.S. has averaged 433. Most rigs produce both oil and gas.

U.S. crude traded around $48/bbl this week and has averaged about $39/bbl so far in 2020.

Even though the oil contract was down about 20% since the beginning of 2020, it was still up about 160% over the past eight months on hopes global economies and energy demand will return as more governments relax coronavirus lockdowns.

Most energy firms have said they plan to cut spending in 2021 as they stay focused on improving earnings rather than just boosting output.

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