U.S. energy companies have added oil and gas rigs for the sixth time in seven weeks as oil prices hit their highest level since 2018, although gas drillers slowed down.
The number of oil and gas rigs, an early indicator of future production, rose by five to 461 in the week to June 11, its highest level since April 2020, the energy services company said on Friday. Baker Hughes Co (BKR.N) in his closely watched report. . ,,
This brings the total number of platforms to 182 platforms, or 65%, compared to the same period last year. It has also increased 89% since falling to a record low of 244 in August 2020, according to data from Baker Hughes dating back to 1940.
In their largest increase in a month, oil rigs rose six to 365 this week, their highest since April 2020.
Gas rigs fell from one to 96, their fifth consecutive weekly cut for the first time since May 2020.
“While the flattening trend may continue in the near term, we still expect further gains (in number of platforms) in-store as we move forward into the second half of 2021 and will continue to model approximately 450 horizontal platforms operating by the end of 2021, ”analysts at Tudor, Pickering, Holt & Co said.
That compares to the 420 horizontal platforms in service this week, according to Baker Hughes.
U.S. crude futures were trading above $ 71 a barrel on Friday, putting the contract on track to reach its highest close since October 2018.
With prices increasing mainly since October 2020, some energy companies have said they plan to increase spending in 2021 after cutting spending on drilling and completion for the past two years.
This increase in spending, however, remains small as most companies continue to focus on increasing cash flow, reducing debt and increasing shareholder returns rather than increasing production.
In fact, many analysts do not expect this additional spending to increase production at all. Instead, they think it will only replace the natural declines in production from the wells.
Overall, U.S. oil production is projected to grow from 11.3 million barrels per day (bpd) in 2020 to 11.1 million bpd in 2021 before rising to 11.8 million bpd in 2022, according to projections. of the government. This compares to the record annual record of 12.3 million bpd in 2019. read more
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