Rig count increases for the sixth time in past seven weeks
The current count is up 5% in the last month and up 27% year-over-year, according to Enverus. This was the sixth time the count increased in the past seven weeks and put the total number up 32, or 8%, over this time in 2020.
The most notable changes during the past month occurred in the Midcontinent (up 12), Gulf Coast (up seven) and Ark-La-Tex (up six) regions.
RELATED:
US Oil Rig Count Dips, Gas Rig Count Inches Up
WTI crude futures in the U.S. were trading around $64/bbl on April 30, putting the contract on track to rise for the fifth time in the past six months.
With prices mostly rising since last November, some oil and gas producers plan to boost spending in 2021 after cutting drilling and completion expenditures over the past two years. That spending increase still remains small as most E&P companies continue to focus on boosting cash flow, reducing debt and increasing shareholder returns rather than adding output.
Crude oil output in the U.S. dropped by over 1 million bbl/d in February to 9.862 million bbl/d, its lowest levels since October 2017, according to a monthly government report.
February’s data indicates that is the first time that oil production in the U.S. has dropped below 10 million bbl/d since January 2018, according to the Energy Information Administration (EIA). The output drop came as a freeze in Texas shut in some production, but declines were also seen in other major oil-producing states.
Monthly gross natural gas production in the U.S. Lower 48 states fell by 7.8 Bcf/d, the biggest monthly decline on record, to 94.8 Bcf in February, the EIA said.
Trends
Recommended Reading
Range Resources Holds Production Steady in 1Q 2024
2024-04-24 - NGLs are providing a boost for Range Resources as the company waits for natural gas demand to rebound.
Hess Midstream Increases Class A Distribution
2024-04-24 - Hess Midstream has increased its quarterly distribution per Class A share by approximately 45% since the first quarter of 2021.
Baker Hughes Awarded Saudi Pipeline Technology Contract
2024-04-23 - Baker Hughes will supply centrifugal compressors for Saudi Arabia’s new pipeline system, which aims to increase gas distribution across the kingdom and reduce carbon emissions
PrairieSky Adds $6.4MM in Mannville Royalty Interests, Reduces Debt
2024-04-23 - PrairieSky Royalty said the acquisition was funded with excess earnings from the CA$83 million (US$60.75 million) generated from operations.
Equitrans Midstream Announces Quarterly Dividends
2024-04-23 - Equitrans' dividends will be paid on May 15 to all applicable ETRN shareholders of record at the close of business on May 7.