Oil producer Hess Corp. on March 22 said it would give “strong consideration” to adding a fourth drilling rig to its North Dakota shale operations this year if prices remain strong.

U.S. oil futures were trading at about $111.76/bbl on March 22, up about 50% since the start of the year on Russia's invasion of Ukraine and sanctions on its oil exports.

In January, Hess had said it next year might add a fourth rig, which would take its Bakken shale production to 200,000 bbl/d. Comments on March 22 indicate it has moved up its timeline for the decision.

Still, Hess emphasized it remains focused on increasing shareholder returns over spending on production growth.

“As our portfolio becomes increasingly cashflow positive, you have our commitment that we will prioritize significant increases in our cash returns to shareholders,” CEO John Hess said at the Scotia Howard Weil Energy Conference.

Hess anticipates boosting cash returns in the coming years through increases to its regular dividend and share buybacks.

Hess also said it last week opted to pay roughly $325 million to remove Brent $105 call options and WTI $100 call options in a bid to profit off a steep rise in oil prices.

“Hess is now positioned to benefit on the upside while remaining protected on the downside,” Hess said.

Onshore