U.S. energy firms this week added gas and oil that is natural for a second week in a row as some drillers return towards the wellpad given that crude rates have held gains made since recovering from coronavirus-linked lows into the spring.
The oil and gas rig count, an indicator that is early of output, rose six to 261 in the week to Sep. 25, energy services firm Baker Hughes Co said in its closely followed report on Friday.
The total rig count fell to a record low of 244 rigs during the ended Aug. 14, according to Baker Hughes data going back again to 1940 week.
In September, the rig count rose a second month in a row, nonetheless it fell for seventh quarter that is consecutive.
U.S. oil rigs rose four to 183 this, while gas rigs rose two to 75, according to Baker Hughes information week. U.S. energy firms this week added gas and oil that is natural.
Despite the fact that U.S. oil prices are still down about 35% since the beginning of the year due to demand that is coronavirus, U.S. crude futures have gained 112% on the past five months to around $40 a barrel on Friday mostly on hopes worldwide economies and power demand will snap back as governments lift lockdowns. [O/R]
Analysts said those higher oil prices have encouraged some power firms to again start drilling.
It is “still too soon to confidently phone an horizontal that is officially drilling) activity trough, but our channel checks do continue to aim towards more activity stabilization ahead,” analysts at Tudor, Pickering, Holt & Co stated this week.
Most organizations still plan to keep costs which are cutting.
U.S. financial services firm Cowen & Co said the 45 research that is separate production (E&P) companies it tracks plan to slash investing by about 47% in 2020 versus 2019. That follows a capex reduced amount of roughly 9% in 2019 and an increase of around 23% in 2018.
Source: Reuters (Reporting by Scott DiSavino; Editing by Marguerita Choy)