Rig count unsteady during past week but some areas showing gains
The U.S. dropped 21 active rigs in the last week to 517 rigs (May 19), according to Enverus Rig Analytics. The week-over-week swing is most likely due to rigs moving between wells, the firm said in a May 19 note. Oil rigs rose by four and gas rigs dropped by one during the past week.
The total rig count was up about 43% over this time in 2020 and up 86% since falling to a record low of 244 in August 2020.
The Williston Basin has made some gains over the last year. The basin, home to the Bakken/Three Forks play, has averaged 10-13 active rigs, with daily counts not exceeding 16. Also in the Rockies region, Utah was averaging three rigs through the first quarter of this year and recently the rig count jumped to nine at the beginning of May.
Other areas seeing slight gains have been Texas’ RRC Dist. 8 and 7B. Also, Oklahoma increased its rig count over the past month to 26 from 17.
WTI crude futures in the U.S. were trading below $64/bbl on May 21, putting the contract up about 31% so far this year after they dropped about 21% last year.
With prices mostly rising since October 2020, some energy firms reportedly plan to boost spending in 2021 after cutting drilling and completion expenditures over the past two years. That 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.
According to the U.S. Energy Information Administration, U.S. oil output from seven major shale formations, including the Bakken, is expected to climb by 26,000 bbl/d in June to 7.73 million bbl/d, the first rise in about three months.
Trends
Recommended Reading
For Sale, Again: Oily Northern Midland’s HighPeak Energy
2024-03-08 - The E&P is looking to hitch a ride on heated, renewed Permian Basin M&A.
CEO: Continental Adds Midland Basin Acreage, Explores Woodford, Barnett
2024-04-11 - Continental Resources is adding leases in Midland and Ector counties, Texas, as the private E&P hunts for drilling locations to explore. Continental is also testing deeper Barnett and Woodford intervals across its Permian footprint, CEO Doug Lawler said in an exclusive interview.
Galp Seeks to Sell Stake in Namibia Oilfield After Discovery, Sources Say
2024-04-22 - Portuguese oil company Galp Energia has launched the sale of half of its stake in an exploration block offshore Namibia.
Chevron Hunts Upside for Oil Recovery, D&C Savings with Permian Pilots
2024-02-06 - New techniques and technologies being piloted by Chevron in the Permian Basin are improving drilling and completed cycle times. Executives at the California-based major hope to eventually improve overall resource recovery from its shale portfolio.
Sinopec Brings West Sichuan Gas Field Onstream
2024-03-14 - The 100 Bcm sour gas onshore field, West Sichuan Gas Field, is expected to produce 2 Bcm per year.