U.S. energy firms this week added oil and natural gas rigs for a second week in a row for the first time since mid-September, energy services firm Baker Hughes said in its closely followed report on Oct. 20.
The oil and gas rig count, an early indicator of future output, rose two to 624 in the week to Oct. 20. Despite this week's rig increase, Baker Hughes said the total count was still down 147 or 19%, below this time last year.
U.S. oil rigs rose by one to 502 this week, while gas rigs also gained one to 118.
U.S. oil futures were up about 12% so far this year after gaining about 7% in 2022. U.S. gas futures, meanwhile, have plunged about 35% so far this year after rising about 20% last year.
Despite higher prices for oil, many firms remained more focused on returning money to investors and paying down debt rather than boosting oil and gas production.
U.S. oil output from top shale-producing regions is on track to decline for a third month in a row in November to its lowest since May, according to the U.S. Energy Information Administration's (EIA) monthly Drilling Productivity Report.
That oil output decline comes even though energy companies were expected to boost spending for a third year in a row in 2023 - though mush of that extra spending will cover rising inflation-related costs for labor and equipment.
The independent exploration and production companies tracked by U.S. financial services firm TD Cowen were on track to boost spending by about 18% in 2023 versus 2022 after increasing spending about 40% in 2022 and 4% in 2021. That 2023 spending increase, however, is down from an earlier expected rise of 19%.
Recommended Reading
TGS Releases Illinois Basin Carbon Storage Assessment
2024-09-03 - TGS’ assessment is intended to help energy companies and environmental stakeholders make informed, data-driven decisions for carbon storage projects.
STRYDE Awarded Seismic Supply Contracts in Mexico
2024-09-03 - STRYDE was awarded two seismic node supply contracts in Mexico, the company’s first projects in the country.
PakEnergy Plows Ahead with New SCADA Solution
2024-09-17 - After acquiring Plow Technologies, home of the OnPing SCADA platform, PakEnergy looks to enhance its remote monitoring solutions.
SLB Launches New GenAI Platform Lumi
2024-09-17 - Lumi’s machine learning capabilities will be used to enhance SLB’s Delfi digital platform offering for better automation and operational efficiencies.
Honeywell Bags Air Products’ LNG Process, Equipment Business for $1.8B
2024-07-10 - Honeywell is growing its energy transition services offerings with the acquisition of Air Products’ LNG process technology and equipment business for $1.81 billion.
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.