The number of US oil rigs increases with crude prices

The number of drilling rigs active in the United States last week Pink by 7, bringing the total to 586 as oil prices remain relatively high despite the new wave of Covid-19 cases brought by the new variant of the coronavirus.

Last week’s count compared to an increase in platform count of 3 for the previous week, bringing the total to 579.

Baker Hughes reported that the total number of active rigs was 238 more rigs than the number of rigs at the same time last year, as the oil industry was just starting to recover from the worst hits of the pandemic. Yet it was still a long way from the number of drilling rigs before the pandemic.

Oil production in the United States last week stood at 11.6 million barrels per day, according to to the Energy Information Administration. This was down from 11.7 million bpd the week before, but up from 11 million bpd a year ago. The four-week average production was estimated at 11.65 million barrels per day.

In 2020, the US oil industry saw the biggest drop in production on record, with production dropping from 12.2 million b / d in 2019 to an average of 11.3 million b / d, according to the EIA .

Following the fall in oil prices in March 2020 due to the pandemic, American operators reduced their production and put fewer wells on line. By May 2020, U.S. crude oil production had fallen to a monthly average of 10 million bpd, from a peak of 12.8 million bpd in January 2020.

Today, according to reports from Baker Hughes, production is improving although much more slowly than in previous industrial cycles. Oil drillers remain cautious in their production growth plans and focus more on returning cash to investors.

As cautious as they are, production is on the rise: the EIA provide in its latest drilling productivity report that oil production in the Lower 48 will drop from

8.342 this month to 8.438 million bpd next month, mainly due to higher production in the Permian, where the average is expected to drop from 4.96 million bpd to 5.031 million bpd.

By Charles Kennedy for Oil chauffage

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