Oil, gas rigs added for fifth time in six weeks

U.S. energy firms this week added oil and natural gas rigs for the fifth time in six weeks

The number of rigs running in the U.S. rose by 13 as of Sept. 8, according to Enverus Rig Analytics. The largest week-over-week changes occurred in the Anadarko Basin, adding five to reach 53, and the Gulf Coast, rising by four to 71. While the total U.S. active rig count is 116% higher than it was a year ago, rig numbers are still 33% below this time in pre-pandemic 2019.

Offshore units in the Gulf of Mexico started to return after Hurricane Ida slammed into the coast. According to Baker Hughes, four offshore rigs returned in Louisiana during the past week—last week, all 14 offshore oil rigs shut due to Ida.

WTI crude futures were trading at about $70/bbl Sept. 10, supported by growing signs of supply tightness in the U.S. as a result of Hurricane Ida. U.S. oil production, according to the latest government projection, is expected to slide from 11.3 million bbl/d in 2020 to 11.1 million bbl/d in 2021 before rising to 11.7 million bbl/d in 2022.

U.S. financial services firm Cowen & Co. said the independent E&P companies it tracks plan to increase spending by about 1% in 2021 versus 2020.


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