The active U.S. rig count fell by one in the last week and is up count is up by 4% over the last month and 68% in the last year. The largest week-over-week increase occurred in the Denver-Julesburg (D-J) Basin, which gained four rigs, followed by the Anadarko Basin with a two-rig increase for a total of 59. Other basins were flat or changed by only one rig.
In the D-J Basin, Civitas Resources increased its rig count from two to four in the past week. Civitas, which formed after the 2021 merger of two Colorado oil and gas companies (Bonanza Creek Energy and Extraction Oil & Gas), also acquired Denver-based Crestone Peak Resources.
The slight rig count increase comes despite oil price declines in six of the past seven weeks. As of Dec. 10, however, WTI was trading around $71/bbl, putting the U.S. crude futures contract on track for its first increase in seven weeks.
Still, despite oil prices soaring about 47% this year, U.S. shale producers have not added to production—investors have pressured oil companies to restrain drilling and return more of their profits to shareholders.
At a recent conference in Houston, Scott Sheffield, CEO of Pioneer Natural Resources Co., said he worries oil prices could get too high and further roil markets after years of underinvestment in the sector. Sheffield said Pioneer is holding firm on plans to grow its production by 5% in 2022, adding one to two rigs per year.
RELATED:
Permian Basin Producers Talk Today’s Challenges with Eyes on Future
Some energy firms have increased spending after cutting drilling and completion expenditures in 2019 and 2020. However, much of that spending has gone to completing wells that were drilled in the past (DUC) wells.
U.S. oil production is expected to slide from 11.3 million bbl/d in 2020 to 11.2 million bbl/d in 2021 before rising to 11.9 million bbl/d in 2022, according to government projections. That compares with the all-time annual high of 12.3 million bbl/d in 2019.
Trends
Recommended Reading
Permian Resources Closes $820MM Bolt-on of Oxy’s Delaware Assets
2024-09-17 - The Permian Resources acquisition includes about 29,500 net acres, 9,900 net royalty acres and average production of 15,000 boe/d from Occidental Petroleum’s assets in Reeves County, Texas.
APA Corp., TotalEnergies Announce $10.5B FID on ‘Goliath’ Sized Deal Offshore Suriname
2024-10-01 - APA and TotalEnergies’ offshore Suriname GranMorgu development is estimated to hold recoverable reserves of more than 750 million barrels.
Utica’s Encino Boasts Four Pillars to Claim Top Appalachian Oil Producer
2024-11-08 - Encino’s aggressive expansion in the Utica shale has not only reshaped its business, but also set new benchmarks for operational excellence in the sector.
Oceaneering Acquires Global Design Innovation
2024-10-30 - Oceaneering purchased Global Design Innovation, the only provider certified by the United Kingdom Accreditation Service (UKAS) to perform remote visual inspection using point cloud data and photographic images.
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.