
More rigs added during the month
U.S. energy firms continued to slowly add oil and gas rigs during the month of June as crude prices rose to their highest since 2018, prompting some operators to return to the field.
The oil and gas rig count rose to its highest level since April 2020. According to Baker Hughes, the total rig count was up about 77%, over this time last year. It was also up 93% since falling to a record low in August 2020.
Along the Gulf Coast, the Eagle Ford shale play lost 10 rigs between Texas’ RRC Dist. 1 and 2, with the most lost in Dist. 2 (seven rigs). In the Rocky Mountain region, Colorado hit double digits (10 total), North Dakota added one (17 total) and Wyoming added three (10 total). In the Permian Basin, RRC Dist. 7C lost four rigs, and Dist. 8 added five. U.S. crude futures were trading below $72/bbl on June 18, close to its highest since October 2018.
With prices mostly rising since October 2020, most energy firms are still focusing on capital discipline and investor returns, rather than expanding supply. Some analysts do not expect that extra spending will boost output at all and think it will only replace natural declines in well production.
U.S. crude production last week rose to 11.2 million bbl/d, its highest since May 2020, according to data from the U.S. Energy Information Administration (EIA) on June 16. U.S. shale oil output usually responds rapidly to price signals and the EIA this week forecast production from seven major shale formations would rise 38,000 bbl/d in July to about 7.8 MMbbl/d.
Trends
Recommended Reading
Diamondback in Talks to Build Permian NatGas Power for Data Centers
2025-02-26 - With ample gas production and surface acreage, Diamondback Energy is working to lure power producers and data center builders into the Permian Basin.
Pioneer Energy’s Tech Offers More Pad Throughput, Fewer Emissions
2025-01-14 - Pioneer Energy’s Emission Control Treater technology reduces emissions and can boost a well’s crude yield by 5% to10%, executives say.
Pair of Large Quakes Rattle Texas Oil Patch, Putting Spotlight on Water Disposal
2025-02-19 - Two large earthquakes that hit the Permian Basin, the top U.S. oilfield, this week have rattled the Texas oil industry and put a fresh spotlight on the water disposal practices that can lead to increases in seismic activity, industry consultants said on Feb. 18.
E&P Highlights: March 3, 2025
2025-03-03 - Here’s a roundup of the latest E&P headlines, from planned Kolibri wells in Oklahoma to a discovery in the Barents Sea.
BYOP (Bring Your Own Power): The Great AI Race for Electrons
2025-01-06 - Data-center developers, scrambling to secure 24/7 power, are calling on U.S. producers to meet demand as natgas offers the quickest way to get more electrons into the taps.
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.