Skyrocketing prices revive US drilling
The number of total active drilling rigs in the US increased by 13 this week as WTI is trading close to $ 109 a barrel. Obviously the price is starting to have an effect on production.
The total platform count rose to 663 this week as US producers continue to prioritize fiscal discipline over risky investments to increase oil production.
Baker Hughes reported this week that the total number of active rigs (oil, gas and miscellaneous) is 261 more rigs than the rig count for the same period in 2021.
Oil rigs increased 8 to 527, while gas rigs increased 5 to 135. Miscellaneous rigs remained the same at 1.
While drilling activity in the United States has increased in recent months, US production shows some lag in growth, which is almost obvious. Weekly U.S. crude oil production remained the same for the fifth consecutive week at 11.6 million barrels per day, according to the latest Energy Information Administration for the week ending March 4.
The number of rigs, i.e. wells, in the Permian basin increased by 6 this week, bringing the total number of rigs in the Permian basin to 316.
Primary Vision's Frac Spread Count, which tracks the number of completion squads that finished wells previously drilled, shows that the frac spread dropped from 10 to 280 in the week ending March 4.
All this while Brent oil grew to over 112 dollars a barrel and WTI to over 109. It is obvious that with these prices the mining activity will restart, even if, unfortunately, probably at a rate not yet sufficient to give real relief to the prices, not even in the US.
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The article Sky high prices relaunch drilling in the USA comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/prezzi-alle-stelle-rilanciano-le-perforazioni-negli-usa/ on Sun, 13 Mar 2022 09:00:52 +0000.