Rig count falls slightly during the last week of the year

The U.S. rig count is down 0.7% in the last month, but up 75% year-over-year, according to Enverus Rig Analytics. The drop is likely the normal industry drop associated with the end of the year.

During December, the total rig count rose by 17. For the quarter, the count was up 65, its fifth increase in a row.

For the year, the rig count was up 235. That compares with a decrease of 454 rigs in 2020 and a decline of 278 rigs in 2019.

Even though the rig count has been rising for a record 17 months in a row, analysts noted production was still expected to ease as energy firms continue to focus more on returning money to investors than boosting output.

WTI was trading around $75/bbl on Dec. 31, putting the U.S. crude futures contract on track for its best month since February 2021.

U.S. oil production is expected to slide from 11.3 million bbl/d in 2020 to 11.2 million barrels per day 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.


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