Rig count rises but is still down 7% year-over-year
The U.S. rig count rose by one in the last week to 509 as of April 14, according to Enverus Rig Analytics. The count is up 5% in the last month but down 7% year-over-year.
Both the Anadarko and Denver-Julesburg basins have seen rig counts recover to 2020 levels. Meanwhile, the Gulf Coast Basin is up 53% year-over-year, but the rig count is still below pre-coronavirus pandemic levels. The Permian Basin is also still down 24% year-over-year and the Williston Basin is down about 61%
WTI crude futures in the U.S. were up about 6% so far this month after gaining 65% over the prior five months as oil demand recovers from being crushed by the COVID-19 pandemic about a year ago. With prices mostly rising since October 2020, some energy firms plan to boost spending slightly in 2021 after cutting drilling and completion expenditures over the past two years.
Any spending increase, however, remains small as most firms continue to focus on boosting cash flow, reducing debt and increasing shareholder returns rather than adding output.
Oil output from seven major shale formations was expected to rise for a third straight month, climbing by about 13,000 bbl/d in May to 7.61 million bbl/d, the Energy Information Administration said on April 12.
Trends
Recommended Reading
Civitas Makes $300MM Midland Bolt-On, Plans to Sell D-J Assets
2025-02-25 - Civitas Resources is adding Midland Basin production and drilling locations for $300 million. To offset the purchase price, Civitas set a $300 million divestiture target “likely to come” from Colorado’s D-J Basin, executives said.
Occidental to Up Drilling in Permian Secondary Benches in ‘25
2025-02-20 - Occidental Petroleum is exploring upside in the Permian’s secondary benches, including deeper Delaware Wolfcamp zones and the Barnett Shale in the Midland Basin.
Matador Touts Cotton Valley ‘Gas Bank’ Reserves as Prices Increase
2025-02-21 - Matador Resources focuses most of its efforts on the Permian’s Delaware Basin today. But the company still has vast untapped natural gas resources in Louisiana’s prolific Cotton Valley play, where it could look to drill as commodity prices increase.
Vital, SM: Woodford-Barnett Wildcats Flush with Barrels in Southern Midland
2025-02-25 - An initial SM Energy test made 250,000 boe in its first eight months online. Vital Energy is reporting more than 150,000 gross boe per 10,000 ft of lateral in its first-six-month output.
Ovintiv Closes $2B Uinta Sale to FourPoint Resources
2025-01-22 - Ovintiv is exiting Utah’s Uinta Basin in a $2 billion sale to FourPoint Resources, which will take over some of the play’s highest quality acreage.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.