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.
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