Nov 18 (Reuters) – U.S. power companies this week added oil and pure gasoline rigs for a 3rd week in a row as comparatively excessive oil costs encourage firms to drill extra.
The oil and gasoline rig depend, an early indicator of future output, rose three to 782 within the week to Nov. 18, its highest since March 2020, power providers agency Baker Hughes Co (BKR.O) mentioned in its carefully adopted report on Friday. , ,
Baker Hughes mentioned that places the entire rig depend up 219 rigs, or 39%, over this time final yr.
U.S. oil rigs rose one to 623 this week, their highest since March 2020, whereas gasoline rigs rose two to 157.
Regardless that the rig depend elevated throughout most months over the previous two years, weekly will increase have averaged zero for the reason that begin of the pandemic in March 2020, serving to maintain oil manufacturing under document ranges seen earlier than the pandemic as many firms focus extra on returning cash to buyers and paying down debt somewhat than boosting output.
The U.S. Vitality Data Administration (EIA) lower its forecast for subsequent yr’s crude output progress by 21%, days after heads of oil producers warned of persistent inflation and supply- chain constraints. learn extra
U.S. crude manufacturing was on monitor to rise from 11.3 million barrels per day (bpd) in 2021 to 11.8 million bpd in 2022 and 12.3 million bpd in 2023, in line with federal power knowledge. That compares with a document 12.3 million bpd in 2019.
However with oil costs nonetheless up about 5% to this point this yr after hovering 55% in 2021 – and stress from the federal government to supply extra – a number of power companies have mentioned they plan to spice up spending for a second yr in a row in 2022 after reducing drilling and completion expenditures in 2019 and 2020.
Reporting by Scott DiSavino in New York
Modifying by Matthew Lewis
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