U.S. energy companies added oil and natural gas drilling rigs this week for the second consecutive week, a record 23-month run of increases. This was due to high crude prices and government prodding.
In its closely watched report, Baker Hughes Co stated that the oil and gas rig count, which is an indicator of future output, rose from 13 to 753 in the week to June 24, reaching its highest level since March 2020.
Baker Hughes stated that this brings the total number of rigs up to 283, or 60%, compared to last year.
U.S. oil production rose to 594 from 594 this week, its highest level since March 2020. Meanwhile, gas rigs grew three to 157 to reach their highest level since September 2019.
This record-breaking 23-month streak saw the total oil and gas rig count rise, with 26 gaining in June. The count also grew for seven quarters consecutively, which is the longest streak since 2011.
Record 22 consecutive months of oil rig counts were reached, with 20 more in June. It was also up for the seventh quarter, which is the highest quarter since 2012.
In June, the gas rig count increased by six, surpassing May 2010’s record. The gas count also climbed for seven quarters consecutively, matching the 2004 record.
The total number of rigs has increased for seven consecutive quarters. However, this year’s oil production is expected to be below pre-pandemic record levels. This is because many companies are more focused on paying down debt and returning money to investors than increasing output. They also stated that supply-chain problems are affecting their operations.
According to federal energy data, U.S. crude oil production was expected to increase from 11.2 Million barrels per day in 2021 to 11.9 Million bpd (bpd), in 2022 to 13.0 million BPD in 2023 and 13.0 Mbpd by 2023. This compares to a record 12.3million bpd in 2019.
U.S. crude oil prices have risen 42% to $107 per barrel this year. This is due to Moscow’s invasion of Ukraine. The U.S. government has urged drillers to produce more oil to lower domestic prices.
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