Slight increase in rig count during the past week

The U.S. rig count rose by a total of seven as of the week of June 9, according to Enverus Rig Analytics. The count is down 1% in the last month, but up 87% year-over-year.

The Williston Basin hit a 2021 high of 20 active rigs. Continental Resources Inc. is the most active operator in the basin at seven rigs. In the last month, the company has added two rigs, Enverus said. Also in the Rockies, Wyoming, which has had four rigs operating since April 9, added three rigs since June 4 to make the current rig count seven.

Drilling activity along the U.S. Gulf Coast is down by 14 rigs. The number of operators running rigs in the region fell from 69 in May to 56 in June. The most active operators are EOG Resources Inc., BP  Plc and ConocoPhillips Co., running four rigs each.

Overall, gas rigs fell one to 96, their fifth weekly cut in a row for the first time since May 2020. Analysis by Tudor, Pickering, Holt & Co. indicates that, while the flat trend may continue in the near term, their model indicates about 450 horizontal rigs are likely to be working by the end of 2021.

WTI crude futures in the U.S. were trading over $71/bbl as of June 11, putting the contract on track for its highest close since October 2018.

Overall, U.S. oil production is expected to ease from 11.3 million bbl/d in 2020 to 11.1 million bbl/d in 2021 before rising to 11.8 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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