U.S. energy firms cut the number of oil and natural gas rigs operating to a record low for the 12th consecutive week.
According to the Energy Information Administration’s (EIA) short-term energy outlook for July, crude oil production in the U.S. will average 11.6 million bbl/d in 2020 and 11 million bbl/d in 2021. Output averaged 12.2 million bbl/d of oil in 2019.
However, if a federal judge is successful in shutting down the Dakota Access pipeline from early August until mid-2021 pending a new environmental impact study, production will likely be lower as Bakken operators shut in uneconomic volumes and shift investment to other areas, Enverus said.
On the natural gas front, the EIA forecasts production will fall by 3% this year to an average of 89.2 Bcf/d, with the decline driven by a drop in drilling activity and curtailments. In 2021, output will fall by 6% year-over-year.
Although U.S. energy firms added one oil rig in the first weekly increase since March, Enverus reported the number of oil and natural gas rigs operating continued its descent to a record low for the 12th consecutive week.
The U.S. oil and gas rig count, an early indicator of future output, fell by two to an all-time low of 251 in the week to July 24, according to data going back to 1940 from energy services firm Baker Hughes Co.
The rig count is 695 rigs, or 73%, below this time last year.
U.S. oil rigs rose to 181, while gas rigs fell three to 68, their lowest on record, Baker Hughes said citing data dating back to 1987.
Weekly
Trends
Recommended Reading
Bobby Tudor on Capital Access and Oil, Gas Participation in the Energy Transition
2024-04-05 - Bobby Tudor, the founder and CEO of Artemis Energy Partners, says while public companies are generating cash, private equity firms in the upstream business are facing more difficulties raising new funds, in this Hart Energy Exclusive interview.
Kimmeridge Fast Forwards on SilverBow with Takeover Bid
2024-03-13 - Investment firm Kimmeridge Energy Management, which first asked for additional SilverBow Resources board seats, has followed up with a buyout offer. A deal would make a nearly 1 Bcfe/d Eagle Ford pureplay.
Uinta Basin: 50% More Oil for Twice the Proppant
2024-03-06 - The higher-intensity completions are costing an average of 35% fewer dollars spent per barrel of oil equivalent of output, Crescent Energy told investors and analysts on March 5.
Canadian Natural Resources Boosting Production in Oil Sands
2024-03-04 - Canadian Natural Resources will increase its quarterly dividend following record production volumes in the quarter.
Buffett: ‘No Interest’ in Occidental Takeover, Praises 'Hallelujah!' Shale
2024-02-27 - Berkshire Hathaway’s Warren Buffett added that the U.S. electric power situation is “ominous.”