U.S. energy firms added oil and gas rigs for the fifth time in six weeks
According to Enverus Rig Analytics, the U.S. rig count increased by seven in the last week. The number of active rigs is up 5% in the last month and up nearly 99% year-over-year.
The Gulf Coast saw the largest growth week over week, increasing from 58 to 67 rigs. As of Aug. 4, 14 operators had added a rig each in the region, of which 12 had no rigs a week ago, while only five companies dropped a rig. Conoco and EOG continue to lead the Gulf Coast rig count with four units each, followed by Marathon Oil with three.
Appalachia and the Permian both lost four rigs in each region for the biggest week-over-week drop, losing four rigs each. In Appalachia, five companies each dropped their only rig in the region, while only one added a rig.
Enverus said the most active U.S. operators were currently Pioneer Natural Resources Co. (23), EOG Resources Inc. (18), ConocoPhillips (16) and Mewbourne Oil (16).
U.S. crude futures were trading around $68 per barrel on Aug. 6, putting the contract down about over 7% this week due to worries that rising coronavirus cases will hurt oil demand.
Even though oil prices were over 40% higher so far this year, most energy firms remain focused on returning capital to investors.
U.S. financial services firm Cowen & Co. said the independent E&P companies it tracks plan to increase spending about 1% in 2021 versus 2020. That follows capex reductions of roughly 48% in 2020 and 12% in 2019. Many analysts, however, expect that extra spending will only replace natural declines in well production.
Trends
Recommended Reading
Oxy CEO Sheds Light on Powder River Basin Sale to Anschutz
2024-11-14 - Occidental is selling non-core assets in the Lower 48 as it works to reduce debt from a $12 billion Permian Basin acquisition.
Coterra Eyes Wolfcamp D, Penn Shale Upside with $3.95B Permian M&A
2024-11-13 - With $3.95 billion in Permian M&A, Coterra is adding new Delaware Basin locations in the Bone Spring, Harkey and Avalon benches—and eyeing upside from deeper zones.
Roth-Backed SPAC To Take Public Permian Gas, Helium Producer
2024-11-13 - A blank-check company backed by Roth Capital Partners and Craig-Hallum Capital Group aims to combine with Permian gas and helium producer New Era Helium.
Investment Firm Aethon Explores Options for $10B US Natgas Assets, Sources Say
2024-11-13 - U.S. energy-focused investment firm Aethon Energy Management is exploring options for its natural gas production and midstream assets that include a sale or an initial public offering at a valuation of about $10 billion, including debt, people familiar with the matter said on Nov. 12.
Standard Solar Acquires California Solar Project
2024-11-13 - Located in Kern County, the Windhub Solar B solar project will have 112 acres dedicated to the solar array, Standard Solar says.
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.