Saturday, September 30, 2023

The decline in the number of oil rigs is accelerating

Despite the continuously increasing production of crude oil, the USA has recorded a significant decline in the number of oil rigs.

Weekly reduction in rigs, according to Baker Hughes

According to recent data from Baker Hughes, the total number of active rigs in the US fell by 12 units this week to a total of 652 rigs.

Since the beginning of the year, 136 fewer drilling platforms have been counted. The current number is lower at 54 platforms compared to the numbers reported in early 2019 before the pandemic.

In this panorama, the number of oil platforms decreased by 5 to 520, while the number of gas platforms decreased by 6 to a total of 117 pieces of equipment.

Strategic Basin Activity and Frac Spread Count

The Permian Basin and the Eagle-Ford Basin show numbers that reflect the current state of the industry. Specifically, the Permian has 18 fewer rigs year-over-year, while the Eagle Ford has recorded a decrease of 19 rigs compared to the year-ago period.

Primary Vision’s Frac Spread Count, which measures the number of drill rigs completing uncompleted wells, saw another decline. The number reached 262, up from 257 the previous week but four times higher than at the start of the year.

This metric is relevant given that completing unfinished wells is more financially attractive than starting new wells.

Crude oil production rises: EIA data

The US Energy Information Administration (EIA) reported that crude oil production rose for the second straight week, hitting 12.7 million bpd, the highest since 2019, based on weekly reports.

Compared to last year, production has increased by 500,000 bpd.

These numbers highlight a growing trend in crude oil production despite the decline in drilling infrastructure.

Price reference: WTI and Brent are on the up

As of Friday’s close at 11:10 p.m. ET, the benchmark WTI index was up $0.90 (+1.12%) to close at $81.29 a barrel. That number represents a reduction of about $2 from the previous week.

Brent, on the other hand, was up $0.69 (+0.82%) to settle at $84.81 a barrel, down around $2.40 from the previous week’s data.

World Nation News Desk
World Nation News Desk
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
Latest news
Related news