Rig Count Increases for 11th Time in Past 12 Weeks
Activity is up 14% in the last month, but down 51% year-over-year. According to Enverus, the positive gas outlook is likely drawing drillers back to gassier plays, such as Appalachia.
In the last month, Appalachian rigs have increased by eight to 39. Cabot Oil & Gas has returned to a three-rig program after dropping to two from mid-March through the end of November. PennEnergy Resources is running two rigs for the first time since 2018. Haynesville rig activity is back at January 2020 levels (40 rigs). The most active operators in the region are Aethon Energy (eight rigs), Rockcliff Energy (five) and Comstock Resources (five).
The Anadarko Basin added five rigs in the last week, bringing its total to 23. The basin is up six on the month.
Although the rig count continues to increase, most companies are cutting 2020 and 2012 spending. Most energy firms plan to focus on improving their earnings rather than just boosting output.
U.S. oil futures were down about 25% since the start of the year at around $46 a barrel. However, the price was still up about 144% over the past eight months on hopes global economies and energy demand will return when governments lift coronavirus lockdowns.
Exxon Mobil Corp. said Nov. 30 it would write down the value of gas properties by $17 billion to $20 billion, its biggest ever impairment, and slash project spending next year to its lowest level in 15 years.
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