U.S. energy firms this week added oil and natural gas rigs for a second week in a row, although the number of offshore units in the Gulf of Mexico (GoM) remained unchanged after Hurricane Ida slammed into the coast over two weeks ago.
Fourteen offshore GoM rigs shut two weeks ago due to Ida remained shut, energy services firm Baker Hughes Co. said in its weekly report. Last week, four of those offshore rigs returned to service. The oil and gas rig count, an early indicator of future output, rose nine to 512 in the week to Sept. 17, its highest since April 2020, Baker Hughes said.
That puts the total rig count up 257 rigs, or 101%, over this time last year.
U.S. oil rigs rose 10 to 411 this week, their highest since April 2020, while gas rigs fell one to 100.
U.S. crude futures were trading under $72 per barrel Sept. 17, heading for the fourth straight weekly gain thanks to the slow recovery in output after two hurricanes in the U.S. GoM.
Overall, the oil and gas rig count has increased for 13 months in a row through August as rising oil prices have prompted drillers to return to the wellpad.
Recommended Reading
E&P Highlights: May 13, 2024
2024-05-13 - Here’s a roundup of the latest E&P headlines, with a couple fields coming online, as well as new contract awards.
New Permian Math: Vital Energy and 42 Horseshoe Wells
2024-05-10 - Vital Energy anticipates making 42 double-long, horseshoe-shaped wells where straight lines would have made 84 wells. The estimated savings: $140 million.
SM Energy Targets Prolific Dean in New Northern Midland Play
2024-05-09 - KeyBanc Capital Markets reports SM Energy’s wells “measure up well to anything being drilled in the Midland Basin by anybody today.”
Vår Selling Norne Assets to DNO
2024-05-08 - In exchange for Vår’s producing assets in the Norwegian Sea, DNO is paying $51 million and transferring to Vår its 22.6% interest in the Ringhorne East unit in the North Sea.
Crescent Energy: Bigger Uinta Frac Now Making 60% More Boe
2024-05-10 - Crescent Energy also reported companywide growth in D&C speeds, while well costs have declined 10%.