Mexico



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

Baker Hughes rigs wk report: U.S. drillers add oil rigs for second week in a row

 

 

By Reuters

NEW YORK
Petroleumworld 06 04 2018

U.S. energy companies added oil rigs for a second week in a row even though crude prices have declined about 7 percent over the past two weeks and analysts do not expect any big changes in the rig count for the rest of the year.

Drillers added two oil rigs in the week to June 1, bringing the total count to 861, the highest level since March 2015, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday. RIG-OL-USA-BHI

That was the eighth time drillers added rigs in the past nine weeks.

The U.S. rig count, an early indicator of future output, is much higher than a year ago when 733 rigs were active as energy companies have been ramping up production in tandem with OPEC's efforts to cut global output in a bid to take advantage of rising prices.

U.S. crude futures fell below $66 a barrel this week, their lowest level since April 17, as U.S. output comes close to matching that of top dog Russia. Just last week, U.S. futures traded over $72 a barrel, their highest since November 2014.

U.S. crude oil production hit a record 10.8 million barrels per day (bpd) last week, while on a monthly basis, it peaked at 10.47 million bpd in March, the Energy Information Administration (EIA) said in separate reports on Thursday.

Production in Texas rose by 4 percent to almost 4.2 million bpd, a record high based on the data going back to 2005. The Permian basin, which stretches across West Texas and eastern New Mexico, is the largest U.S. oilfield.

Analysts at Simmons & Co, energy specialists at U.S. investment bank Piper Jaffray, this week forecast average total oil and natural gas rig count would rise to 1,025 in 2018 and 1,125 in 2019. Last week, Simmons forecast the count would rise to 1,020 in 2018 and 1,125 in 2019.

With the boost in rigs so far this year, analysts were not as bullish on further increases.

Since 1,060 oil and gas rigs were currently in service, drillers would not have to add any more rigs for the rest of the year to hit Simmons' forecast for 2018.

So far this year, the total number of oil and gas rigs active in the United States has averaged 993, up sharply from 2017's average of 876. That keeps the total count for 2018 on track to be the highest since 2014, which averaged 1,862 rigs. Most rigs produce both oil and gas.

Looking ahead, crude futures were trading below $66 for the balance of 2018 and nearly $63 for calendar 2019 .

In anticipation of higher prices, U.S. financial services firm Cowen & Co this week said the exploration and production (E&P) companies they track have provided guidance indicating a 13 percent increase this year in planned capital spending.

Cowen said those E&Ps expect to spend a total of $81.2 billion in 2018, up from an estimated $72.1 billion in 2017.

________________________

Twitter: @petroleumworld1

Petroleumworld.com

Hit your target - Advertise with Us

Reporting by Scott DiSavino Editing by Marguerita Choy from Reuters .

reuters.com 06 01 2018

We invite all our readers to share with us
their views and comments about this article.
Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1

November 13 - 15, 2018.

Gubkin University, Moscow
SPE Student Chapter

 

 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld   / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.