Rig Count, Oil Production Falls over Past Week
As of June 24, there are 30 rigs operating in the U.S., which is down by 70% over the last year and down 24% in the last month. According to Enverus, the rig numbers in the Denver-Julesburg (D-J), Anadarko and Williston basins are at or near single digits.
During June, Oklahoma has remained steady at 10-11 rigs; Texas RRC Dist. 8 with 68-70; Pennsylvania with 22 and Louisiana with 32-34 operating rigs.
Evenvus also reported that U.S. oil production fell by 1.5 million bbl/d “as operators pursued reduced drilling and completion operations and curtailed volumes.”
Using interstate natural gas pipeline receipts, Enverus estimated that crude and condensate production for the March-May period fell 1.08 million bbl/d from the major shale basins (Williston, Delaware, Midland, D-J and Powder River).
Even though oil prices are still down about 37% since the beginning of 2020 due to the effects that coronavirus is having on fuel demand, U.S. crude futures have jumped 127% over the past nine weeks to around $38/bbl June 26 on hopes global economies will snap back as governments lift lockdowns.
Analysts said those higher oil prices will encourage energy firms to slow rig count reductions and possibly start adding units later this year.
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