U.S. energy firms cut the number of oil and natural gas rigs operating to a record low for the 12th consecutive week.
According to the Energy Information Administration’s (EIA) short-term energy outlook for July, crude oil production in the U.S. will average 11.6 million bbl/d in 2020 and 11 million bbl/d in 2021. Output averaged 12.2 million bbl/d of oil in 2019.
However, if a federal judge is successful in shutting down the Dakota Access pipeline from early August until mid-2021 pending a new environmental impact study, production will likely be lower as Bakken operators shut in uneconomic volumes and shift investment to other areas, Enverus said.
On the natural gas front, the EIA forecasts production will fall by 3% this year to an average of 89.2 Bcf/d, with the decline driven by a drop in drilling activity and curtailments. In 2021, output will fall by 6% year-over-year.
Although U.S. energy firms added one oil rig in the first weekly increase since March, Enverus reported the number of oil and natural gas rigs operating continued its descent to a record low for the 12th consecutive week.
The U.S. oil and gas rig count, an early indicator of future output, fell by two to an all-time low of 251 in the week to July 24, according to data going back to 1940 from energy services firm Baker Hughes Co.
The rig count is 695 rigs, or 73%, below this time last year.
U.S. oil rigs rose to 181, while gas rigs fell three to 68, their lowest on record, Baker Hughes said citing data dating back to 1987.
Weekly
Trends
Recommended Reading
Exxon Adds 270,000 Acres for Largest Carbon Storage Site in the US
2024-10-10 - Exxon Mobil has leased acreage on the Gulf Coast from the Texas General Land Office for carbon capture and storage.
LNG Sector Under Fire as Activists’ Lawsuits Surge
2024-10-10 - ESG litigation is increasingly affecting the LNG industry while, more broadly, nearly 70% of climate-related cases are filed in the U.S.
APA Curtails Natgas, NGL Output Amid Low Waha Prices
2024-10-10 - Apache parent APA Corp. curtailed more natural gas and NGL output than previously anticipated as it realized just $0.15/Mcf in the U.S.
After M&A, Some ‘Stingy’ E&Ps Plan to Hold Operated Shale Inventory
2024-10-10 - After a whirlwind run of upstream consolidation, experts anticipated a wave of portfolio rationalization and divestitures. But with high-quality drilling locations already scarce, E&Ps may cling to operated inventory.
CEO: Breakwall Providing Capital as RBLs ‘Materially’ Decrease
2024-10-09 - Breakwall Capital is stepping in to bridge the gap from the historic days of reserve-based lending, Breakwall Managing Partner and co-CEO Jamie Brodsky said at Hart Energy's Energy Capital Conference in Dallas.
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.