rss icon Subscribe
desktop mobile

US Drillers Add Oil Rigs for Second Week in Three

© Aania / Adobe Stock

Posted by Eric Haun

U.S. energy companies added oil rigs for a second time in the last three weeks, extending a 15-month drilling recovery, but the pace of additions has slowed in recent months as firms cut spending plans in reaction to declining crude prices.

Drillers added 3 oil rigs in the week to Aug. 11 bringing the total count up to 768, the most since April 2015. General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday.
That compares with 396 active oil rigs during the same week a year ago. Drillers have added rigs in 56 of the past 63 weeks since the start of June 2016.
The rig count is an early indicator of future output.
U.S. production is expected to rise to 9.4 million barrels per day (bpd) in 2017 and a record 9.9 million bpd in 2018 from 8.9 million bpd in 2016, according to federal projections.
Those output gains have pressured crude prices lower in recent months, prompting several exploration and production (E&P) companies, including Carrizo Oil & Gas Inc, Continental Resources Inc and Denbury Resources Inc.
Those companies and others had mapped out ambitious spending programs for 2017 when they expected U.S. oil prices to be higher than the near $48.50 per barrel range where they are currently trading.
Despite recently announced spending cuts, the E&Ps still plan to spend much more this year than last year.
Analysts at U.S. financial services firm Cowen & Co said in a note this week its capital expenditure tracking showed 57 of the 64 E&Ps it follows planned to increase spending by an average of 49 percent in 2017 from 2016.
That expected 2017 spending increase followed an estimated 48 percent decline in 2016 and a 34 percent decline in 2015, Cowen said.
Cowen said it expects the total U.S. count, including both oil and natural gas rigs, to decline through 2017 and 2018. Most wells produce both oil and gas.
The current U.S. oil and gas rig count is 949, according to Baker Hughes. That compares with an average of 509 in 2016 and 978 in 2015.


(Reporting by Scott DiSavino; Editing by Meredith Mazzilli)

Aug 11, 2017

 

Energy

UAE's Adnoc Awards USD 1.6bln Contract to China’s CNPC

Image: ADNOC

The Abu Dhabi National Oil Company (ADNOC) has awarded contracts worth AED 5.88bn (US $1.

Ice-Breaking LNG Carrier Vladimir Rusanov First Call at PetroChina LNG Jiangsu Terminal

China COSCO Shipping, Executive Vice President, Sun Jiakang (first from left) PAO Novatek, Chairman of the Management Board Leonid Mikhelson (second from left) Director of the National Energy Administration of China, Nur Bekri (fourth from left) Minister of Energy of Russia, Alexander Novak (fourth from right) CNPC, Board Director, President, Zhang Jianhua (third from right) MOL, Senior Managing Executive Officer, Takeshi Hashimoto (first from right). Photo: Mitsui O.S.K. Lines

Mitsui O.S.K. Lines (MOL) announced that the Ice-Breaking LNG Carrier "Vladimir Rusanov"

S.Korea LNG Imports Set to Ease from Record

© alexyz3d / Adobe Stock

South Korean imports of liquefied natural gas are set to ease from record levels racked up in the

News

HMM to Order 20 Mega Containerships

(File photo: Hyundai Merchant Marine)

South Korea’s largest shipping line Hyundai Merchant Marine (HMM) announced it will order 20 new

Remote Control Gantry Cranes for Felixstowe Port

Two new remote-controlled gantry cranes have been delivered to the Port of Felixstowe Photo Felixstowe Port

The Port of Felixstowe has taken delivery of its first two remote control ship-to-shore gantry

Pirate Attacks Worsen in Gulf of Guinea - IMB

Photo courtesy ICC

A surge in armed attacks against ships around West Africa is pushing up global levels of piracy

Maritime Apps