New rigs added for 10th week in a row
U.S. energy firms this week added oil and natural gas rigs for a 10th week in a row, with the rig count up in January for a sixth straight month, as monthly oil production rebounds amid rising prices. The 10 weeks of gain is the longest streak of increases since June 2018. The count is up 9% in the last month but still down 48% year-over-year.
The Gulf Coast Basin added four active rigs and two of those are working for EOG Resources Inc. (one each in Karnes and Gonzales counties, Texas). EOG is the most-active company in the region. In the Permian Basin, Occidental Petroleum Corp. and Pioneer Natural Resources Co. added three rigs each. Surge Operating also mobilized two rigs in the Permian within the last month. Appalachia also added five additional rigs with Southwestern Energy Co. adding two rigs since Jan. 1. Antero Resources Corp. and Range Resources Corp. both added one rig each in the Appalachian Basin.
U.S. crude oil production rose 692,000 bbl/d in November to 11.1 million bbl/d, its highest since April 2020, according to government monthly data released on Jan. 29. Oil output dropped from a monthly record high of 12.9 million bbl/d in November 2019 to just 10.0 MMbbl/d in May 2020 as coronavirus depressed demand and prices forced widespread drilling cuts.
WTI, the benchmark for U.S. crude futures, was trading around $52/bbl on Jan. 29, which is below near $54 high hit earlier in the month, which was the contract’s highest since February 2020.
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