U.S. energy firms added oil rigs for a second week in a row even as oil prices fell to 18-month lows and headed for losses of more than 20% this year.
Drillers added 2 oil rigs in the week to Dec. 28, bringing the total count to 885, Baker Hughes, a GE Company, said in its closely followed report on Dec. 28.
For the month the rig count fell by 2, its first decline in six months. But for the quarter, the count was up 22, the fourth increase in a row.
For the year the count was up 138. That compares with an increase of 222 rigs in 2017 and a decline of 11 rigs in 2016.
The U.S. rig count, an early indicator of future output, is higher than a year ago when 747 rigs were active after energy companies spent more to capture higher prices.
U.S. West Texas Intermediate (WTI) crude futures were last up 15 cents to $44.76 a barrel, after reaching $46.22 a barrel earlier, though the U.S. benchmark was headed for a third straight week of losses.
Crude futures were trading around $46.74 a barrel for the balance of 2019 and $48.43 for calendar 2020.
Year-to-date, the total number of oil and gas rigs active in the United States has averaged 1,031. That keeps the total count for 2018 on track for the highest since 2014, which averaged 1,862 rigs. Most rigs produce both oil and gas.
Recommended Reading
Gulfport Plans Liquids-rich Program After ‘Strong’ Ohio Oil Tests
2024-05-01 - Appalachia gas producer Gulfport Energy continues to report “strong oil production” from a two-well Hendershot pad drilled in eastern Ohio last year. Gulfport plans to develop additional liquids-rich opportunities this year as natural gas prices hover near record lows.
Decoding the Delaware: How E&Ps Are Unlocking the Future
2024-05-01 - The basin is deeper, gassier, more geologically complex and more remote than the Midland Basin to the east. But the Delaware is too sweet of a prize to pass up for many of the nation’s top oil and gas producers.
Chevron CEO: Permian, D-J Basin Production Fuels US Output Growth
2024-04-29 - Chevron continues to prioritize Permian Basin investment for new production and is seeing D-J Basin growth after closing its $6.3 billion acquisition of PDC Energy last year, CEO Mike Wirth said.
Novo II Reloads, Aims for Delaware Deals After $1.5B Exit Last Year
2024-04-24 - After Novo I sold its Delaware Basin position for $1.5 billion last year, Novo Oil & Gas II is reloading with EnCap backing and aiming for more Delaware deals.
Enverus: 1Q Upstream Deals Hit $51B, but Consolidation is Slowing
2024-04-23 - Oil and gas dealmaking continued at a high clip in the first quarter, especially in the Permian Basin. But a thinning list of potential takeout targets, and an invigorated Federal Trade Commission, are chilling the red-hot M&A market.