Learn more about Hart Energy Conferences
Get our latest conference schedules, updates and insights straight to your inbox.
U.S. energy firms this week added oil and natural gas rigs for a fifth week in a row for the first time since November as crude prices extended their rally to a seventh week to levels not seen since 2014, prompting drillers to seek more oil.
The oil and gas rig count, an early indicator of future output, rose three to 613 in the week to Feb. 4, its highest since April 2020, energy services firm Baker Hughes Co. said in its closely followed report. Even though the rig count has climbed for a record 18 months in a row, the weekly increases have mostly been in single digits and oil production is still far from pre-pandemic record levels as many companies focus more on returning money to investors rather than boosting output.
Baker Hughes said that puts the total rig count up 221, or 56%, over this time last year.
U.S. oil rigs rose two to 497 this week, their highest since April 2020, while gas rigs gained one to 116, their highest since January 2020.
WTI crude futures in the U.S. traded over $93/bbl on Feb. 4, their highest since September 2014, putting the contract on track to rise for a seventh week in a row for the first time since October 2021.
RELATED:
Oil Price Surge Pushes WTI over $90 for First Time since 2014
ConocoPhillips Co. CEO Ryan Lance on Feb. 3 warned that high prices may lead U.S. oil producers to add production too quickly, leading to oversupply.
“If we are getting back to the level of growth in the U.S.” comparable to the 2014-2015 shale boom, said Lance, and “if you’re not worried about it, you should be,” he told investors during a conference call.
ConocoPhillips’ 10-year plan eyes high single-digit volume growth from its shale business in the Permian Basin, while rival Exxon Mobil Corp. aims to raise its output from the largest U.S. shale basin by 25% this year on top of a similar increase in 2021.
Data provider Enverus, which publishes its own rig count data, said drillers added 14 rigs in the last week, bringing the total to 720 as of Feb. 2.
Enverus said the biggest increase was in the Permian Basin (plus 11 rigs to 278) where Pioneer Natural Resources Co. is the most active driller with 26 rigs, and the Gulf Coast (plus nine rigs to 90) where ConocoPhillips is the most active operator with five rigs.
Recommended Reading
CERAWeek: Tecpetrol CEO Touts Argentina Conventional, Unconventional Potential
2024-03-28 - Tecpetrol CEO Ricardo Markous touted Argentina’s conventional and unconventional potential saying the country’s oil production would nearly double by 2030 while LNG exports would likely evolve over three phases.
DUG GAS+: Chesapeake in Drill-but-don’t-turn-on Mode
2024-03-28 - COO Josh Viets said Chesapeake is cutting costs and ready to take advantage once gas prices rebound.
CERAWeek: Trinidad Energy Minister on LNG Restructuring, Venezuelan Gas Supply
2024-03-28 - Stuart Young, Trinidad and Tobago’s Minister of Energy, discussed with Hart Energy at CERAWeek by S&P Global, the restructuring of Atlantic LNG, the geopolitical noise around inking deals with U.S.-sanctioned Venezuela and plans to source gas from Venezuela and Suriname.
Exclusive: Chevron Balancing Low Carbon Intensity, Global Oil, Gas Needs
2024-03-28 - Colin Parfitt, president of midstream at Chevron, discusses how the company continues to grow its traditional oil and gas business while focusing on growing its new energies production, in this Hart Energy Exclusive interview.
Baltimore Port Closure Could Dent US Coal Export Volumes, EIA Says
2024-03-28 - Baltimore handled exports of 28 million short tons last year, making up 28% of total U.S. coal exports.