Rig count increases again
The U.S. rig count rose to 535 rigs as of May 12. According to Enverus, the tally of oil and gas rigs operating in the U.S. is up 3% on the month and up 52% year-over-year.
The most notable week-over-week change occurred in the Permian Basin, where seven additional rigs were added in New Mexico’s Lea and Eddy counties within the Delaware Basin. Also in the Delaware, Reeves County, Texas, is the most active with 22 operating rigs.
WTI crude futures in the U.S. were trading around $65/bbl on May 14, putting the contract up about 34% so far this year after it fell about 21% last year. With prices mostly rising since October, some energy firms have said they plan to boost spending in 2021 after cutting drilling and completion expenditures over the past two years.
Overall, U.S. oil production is expected to ease from 11.3 million bbl/d in 2020 to 11 million bbl/d in 2021 before rising to 11.8 million bbl/d in 2022, according to government projections, which compares with the all-time annual high of 12.2 million bbl/d in 2019.
Trends
Recommended Reading
Talos Energy Expands Leadership Team After $1.29B QuarterNorth Deal
2024-04-25 - Talos Energy President and CEO Tim Duncan said the company has expanded its leadership team as the company integrates its QuarterNorth Energy acquisition.
Energy Transfer Ups Quarterly Cash Distribution
2024-04-25 - Energy Transfer will increase its dividend by about 3%.
ProPetro Ups Share Repurchases by $100MM
2024-04-25 - ProPetro Holding Corp. is increasing its share repurchase program to a total of $200 million of common shares.
Baker Hughes Hikes Quarterly Dividend
2024-04-25 - Baker Hughes Co. increased its quarterly dividend by 11% year-over-year.
Weatherford M&A Efforts Focused on Integration, Not Scale
2024-04-25 - Services company Weatherford International executives are focused on making deals that, regardless of size or scale, can be integrated into the business, President and CEO Girish Saligram said.