Rig count unsteady during past week but some areas showing gains
The U.S. dropped 21 active rigs in the last week to 517 rigs (May 19), according to Enverus Rig Analytics. The week-over-week swing is most likely due to rigs moving between wells, the firm said in a May 19 note. Oil rigs rose by four and gas rigs dropped by one during the past week.
The total rig count was up about 43% over this time in 2020 and up 86% since falling to a record low of 244 in August 2020.
The Williston Basin has made some gains over the last year. The basin, home to the Bakken/Three Forks play, has averaged 10-13 active rigs, with daily counts not exceeding 16. Also in the Rockies region, Utah was averaging three rigs through the first quarter of this year and recently the rig count jumped to nine at the beginning of May.
Other areas seeing slight gains have been Texas’ RRC Dist. 8 and 7B. Also, Oklahoma increased its rig count over the past month to 26 from 17.
WTI crude futures in the U.S. were trading below $64/bbl on May 21, putting the contract up about 31% so far this year after they dropped about 21% last year.
With prices mostly rising since October 2020, some energy firms reportedly plan to boost spending in 2021 after cutting drilling and completion expenditures over the past two years. That spending increase, however, remains small as most firms continue to focus on boosting cash flow, reducing debt and increasing shareholder returns rather than adding output.
According to the U.S. Energy Information Administration, U.S. oil output from seven major shale formations, including the Bakken, is expected to climb by 26,000 bbl/d in June to 7.73 million bbl/d, the first rise in about three months.
Trends
Recommended Reading
Ovintiv Swaps the Uinta for Montney in Multiple M&A Moves
2024-11-15 - Ovintiv is expanding greatly in the Canadian Montney Shale play through a US$2.38 billion deal with Paramount Resources and exiting the newly booming Uinta Basin in Utah with a $2 billion sale to FourPoint Resources.
Ovintiv to Divest Permian Assets Amidst M&A Rumors
2024-10-02 - Ovintiv is marketing assets in the Permian Basin amidst rumors that the Denver-based E&P is looking to join in on the M&A frenzy.
As Permian Targets Grow Scarce, 3Q M&A Drops to $12B—Enverus
2024-10-16 - Upstream M&A activity fell sharply in the third quarter as public consolidation slowed and Permian Basin targets dwindled, according to Enverus Intelligence Research.
SM Energy, NOG Close $2.6 Billion in Uinta Basin Acquisitions
2024-10-02 - SM Energy and Northern Oil and Gas have closed the acquisitions of XCL Resources and Altamont Energy, adding hundreds of locations and oil cuts of 86% to 87%.
Diamondback’s Viper Buys $1.1B in Permian Mineral, Royalty Interests
2024-09-11 - Diamondback subsidiary Viper Energy is spending $1.1 billion on a series of Permian Basin mineral and royalty acquisitions from Tumbleweed Royalty, which was formed by the executives behind Double Eagle Energy.
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.