No increase in U.S. rig count in the past week
The Enverus tally of rigs operating in the U.S. had the count increase by three in the past week. Meanwhile, Baker Hughes data indicated that the rig count last week dropped by one.
Nevertheless, this is the first week in 2021, according to Enverus, to show an increase on a year-over-year basis. The current rig count is up 7% in the last month and up 11% year-over-year.
WTI crude futures in the U.S. were trading around $62/bbl on April 23, putting the contract on track to rise in April for a fifth straight month. At this point in 2020, crude spot prices went from averaging a closing price of $50.54/bbl in February to an average of $16.55/bbl in April, according to the EIA.
With prices mostly rising since October 2020, some energy firms said they plan to boost spending a bit in 2021 after cutting drilling and completion expenditures over the past two years. That 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.
Oilfield activity in North America is expected to be at levels to maintain existing production, said top oilfield services provider Schlumberger CEO Olivier Le Peuch this past week.
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