U.S. drillers add oil and gas rigs for fifth week in a row – Baker Hughes

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A pump jack operates in front of a drilling rig at sunset in an oilfield in Midland, Texas, the United States, August 22, 2018. REUTERS / Nick Oxford / File Photo

October 8 (Reuters) – U.S. energy companies this week added oil and gas rigs for the fifth week in a row as oil prices hit their highest level since 2014, prompting some drillers to return to the rig. drilling form.

The combined number of oil and gas rigs, an early indicator of future production, increased by five to 533 during the week of October 8, its highest level since April 2020, energy services company Baker said. Hughes Co (BKR.N) in its closely watched report. Friday. ,,

The total number of platforms increased by 264 platforms, or 98%, compared to the same period last year.

U.S. oil rigs rose five to 433 this week, also since April 2020, while gas rigs were flat at 99 for a third week in a row.

U.S. crude futures hit their highest level since 2014 in intraday trading this week and are currently trading above $ 79 a barrel on Friday, supported by a global energy crisis that has helped natural gas prices to reach record highs and prompted China to demand an increase in coal production.

Surprisingly, these higher natural gas prices have yet to prompt drillers to start looking for more gas. Gas prices in the United States hit their highest level since 2008 earlier this week, rising more than 120% so far this year, but the number of gas rigs was still below what ‘it was in July.

“Natural gas has been trading above $ 4.00 (per million British thermal units) since late July, but no producer has estimated it should sink a rig this week,” Bob said. Yawger, director of energy futures at Mizuho in New York.

For comparison, gas futures have averaged $ 2.13 in 2020 and $ 2.66 over the past five years (2016-2020).

Oil is another story. With oil prices up about 64% so far this year, some energy companies have said they plan to increase spending in 2021 after cutting spending on drilling and completion in the two last years.

This increase in spending, however, remains small.

Occidental (OXY.N) wants to increase its margins and restore dividend payments to its shareholders rather than focusing on growing its oil production volumes, the chief of one of America’s largest producers said Thursday. Read more

U.S. investment bank Piper Sandler this week forecast the number of rigs to average 472 in 2021 and 599 in 2022 from 436 in 2020.

This forecast was up from its previous projections, with the number of rigs rising to an average of 466 in 2021 and 583 in 2022.

The annual average number of rigs peaked at 1,919 in 2012 and hit a record low of 433 in 2020, according to Baker Hughes data dating back to 1988.

Reporting by Scott DiSavino Editing by Marguerita Choy

Our Standards: The Thomson Reuters Trust Principles.

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