2023-11-17 18:06:56
U.S. energy companies added oil and natural gas drilling rigs this week for the first time in three weeks, as the number of oil drilling rigs increased the most since February, energy services company Baker Hughes said in its closely watched report on Friday.
The number of oil and gas installations, an early indicator of future production, increased by two to 618 during the week of November 17.
The number of oil drilling rigs increased by six to 500 this week, while the number of gas drilling rigs fell by four to 114, its lowest level since the start of September.
Data provider Enverus, which publishes its own rig count data, said drillers removed 13 rigs in the week ending Nov. 15, bringing the total to 690. Nevertheless, the total number of devices increased by about 2% over the past month, but decreased by 21% year-over-year.
U.S. oil futures are down about 6% year to date, after rising about 7% in 2022. U.S. gas futures, meanwhile, have fallen by ‘about 35% since the start of the year after increasing by about 20% last year.
Even as lower prices prompt some producers to cut back on new drilling, oil and gas production is still expected to reach record highs in 2023 and 2024 as companies complete work on wells already drilled.
The total number of oil and gas wells drilled but not completed (DUC) fell by 92 to 4,524 in October, the lowest level since December 2013, according to the US Administration’s Drilling Productivity Report Energy Information System (EIA).
Gas production in North Dakota hit a record 3.440 billion cubic feet per day (bcfd) in September, while crude production in the nation’s third-largest oil-producing state is expected to be flat or slightly lower in October, but higher than 1.2 million barrels per day, the state regulator said this week. (Reporting by Scott DiSavino; Editing by Marguerita Choy)
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