Exploration & Production - Rig Counts
Drillers added two oil rigs in the week to Nov. 11, bringing the total count up to 452, the most since February, but still below the 574 rigs seen a year ago, energy services firm Baker Hughes Inc. (NYSE: BHI) said on Nov. 11.
The North American rig count ended the week at 507, up 10 from the previous week but down from the 1,001 rigs that were operating a year ago.
US Rigs Up For Second Straight Week For First Time Since August
Crude oil's flirtation with $50 per barrel drive U.S. weekly rig count up for only second time in 2016.
Total U.S. rig count down 12 rigs from last week to 502total U.S. rig count down 12 rigs from last week to 502.
It was another tough week for rig counts in North America. In the U.S., the total number of rigs dropped by 27 the week of Feb. 15, down to 514 rigs, according to data provided by Baker Hughes. Oil rigs fell by 26 to 413, and gas rigs lost one, falling to 101.
Simmons & Co. International analysts are predicting that U.S. natural gas production will fall by 600 million cubic feet per day (MMcf/d) or by 1% in 2016, the first such decline since 2005.
The EIA predicts a drop of 116,000 barrel per day in Lower 48 production, with most of the lost volumes coming from the Eagle Ford. The Permian Basin’s production will increase.
Halcón’s Steve Herod said that lowering drilling and completions costs is essential for E&P survival. Herod said the company Halcón has lowered wells costs to $6.75 million from $9.5 million in 2014.
Potential buyers have had to cut employees, and so far few companies are going out of their way to aggressively buy frack fleets or other equipment.
Oil exports are needed, but improbable, as U.S. oil supply builds. Near the end of March, storage at Cushing, Okla., had grown to 58.9 million barrels, about 80% of capacity.
U.S. crude oil in storage grew by 8.4 million barrels—twice as much as commodity analysts expected—to 1.125 billion barrels for the week ending Feb. 20, according to the EIA’s weekly report Wednesday. Of that, 434 million was in non-SPR storage, up from 363 million a year ago.