Rig Count, Production Finally Stabilizes
The lowest daily count of active rigs the U.S. so far this year, according to Enverus, was 264 rigs and since then, the count has consistently stayed above 270.
Enverus’ RigData’s Day Rate Report showed the average day rate across the U.S. and all rig classes was $15,898 in July. Rates have continued to fall across the board since February, but the decline started to taper off over the last two months after peaking at -3% month-to-month in May.
Oil production has also stabilized, according to the U.S. Energy Information Administration’s weekly petroleum status report. Output in the U.S. for the week ending July 31 was 11 million bbl/d of oil, down 100,000 bbl/d from the prior week.
On Aug. 5, the front-month contract for WTI settled at $42.19/bbl, which was the first time it closed above $42 since the price crash in early March. The front-month contract for Henry Hub gas futures settled at $2.191 per million Btu on the same day, up $0.337 per million per Btu over the last week on forecasts for warmer weather and improved demand for LNG feed gas.
The oil and gas industry appears to have found a bottom over the last month, according to Enverus, at least temporarily. However, the firm noted that the activity level is still fragile and depends on avoiding any more shocks to global demand.
Weekly
Trends
Recommended Reading
Getting to the Core: The Know-how of Geomechanics to Capture Geothermal
2024-08-21 - Understanding the behavior and geomechanics of fracture-dominated reservoirs is a must for developing geothermal assets.
Fervo Energy Achieves ‘Record Breaking’ Geothermal Well Flow Rates
2024-09-10 - Fervo Energy’s Cape Station project will generate 90 megawatts of renewable energy capacity during its first phase.
US Navy Taps Sage Geosystems for Geothermal Initiatives in Texas
2024-10-03 - The expanded collaboration with the Department of Defense follows Sage-led geothermal initiatives at Fort Bliss and the Ellington Field Joint Reserve Base in Texas.
Ormat Targets Geothermal, Energy Storage Growth in US to Meet Rising Demand
2024-08-08 - Nevada-based Ormat Technologies—which recently formed a geothermal partnership with SLB—has 10 geothermal, three solar and seven energy storage projects under development.
Sage, California Resources to Partner on Geothermal, Energy Storage
2024-09-25 - Sage Geosystems and California Resources Corp. signed of a memorandum of understanding to pursue subsurface energy storage and geothermal power generation in California.
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.