2023-09-08 17:07:14
September 8 – U.S. energy companies this week increased the number of oil drilling rigs for the first time since June, while reducing the number of natural gas drilling rigs, the energy company said. Baker Hughes energy services in its closely followed report on Friday.
The number of oil and gas installations, an early indicator of future production, increased by one to 632 during the week of September 8.
Despite the increase in rig numbers this week, Baker Hughes said the total number was still 127, or 17 percent, lower than the same time last year.
U.S. oil rigs increased by one unit to 513 this week, while gas rigs decreased by one unit to 113, their lowest level since January 2022.
After oil and gas prices skyrocketed following Russia’s invasion of Ukraine last year, the number of drilling rigs in the United States soared to 784 as of November 2022, but it has since fallen regarding 19% following the price drop earlier this year.
The CEO of oilfield services company Patterson-UTI said this week that he expects the number of oil and gas drilling rigs in the United States to go back to
more than 700
by the end of next year, with high energy prices boosting drilling activity.
U.S. oil futures are up regarding 9% year to date, following rising regarding 7% in 2022. U.S. gas futures, meanwhile, have fallen by ‘regarding 42% since the start of the year, following increasing by regarding 20% last year.
Rising oil prices have led to an increase in crude oil production in the United States.
American crude oil production
on course to reach a high this year not seen since the COVID-19 pandemic, while another record was expected for gas production.
gas production
in 2023, despite the sudden drop in prices.
This rise in gas production is primarily due to increased interest in oil drilling in shale basins that also produce a lot of associated gas, such as the Permian in west Texas and eastern New Mexico.
Chevron said this week that it plans to increase capital spending in the Permian by 25% in 2024 compared to its annual forecast, and that it is targeting record production despite a more modest plan for the number of drilling rigs in the largest oil field in the United States.
The second-largest U.S. oil producer expects an average of 13 to 14 company-operated rigs in 2024 in the basin, up from 2022 but fewer than previously forecast. (Reporting by Scott DiSavino; Editing by Marguerita Choy)
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