(Reuters) – U.S. energy companies this week posted oil and natural gas rigs for the sixth week in a row in the best quarter to boost the rig count from the second quarter of 2017 as producers return to the well with crude prices holding above $ 45 a barrel.
Oil and gas rig counts, an early indicator of future results, rose 3 to 351 a week to Dec. 30, energy services company Baker Hughes Co. said in its report that followed closely Wednesday.
In December, the total number of rigs rose by 31, the fifth monthly increase in a row.
For the quarter, they counted up 90, the highest number in a quarter since the second quarter of 2017 when it rose by 116 rig.
For the year the count was down 454. That compares to a decrease of 278 rig in 2019 and an increase of 154 rig in 2018.
The number of operating rigs has gone up since August, when it hit a low of 244, according to Baker Hughes data dating back to 1940. Baker Hughes released a North American rig count report two a day earlier than usual due to the New Year holidays on Friday. U.S. oil crows rose to 267 this week, the highest level since May, while gas crows remained unchanged at 83, the highest level since the end of April, according to Baker Hughes data.
U.S. crude traded at about $ 48 per barrel this week and is around $ 39 per barrel so far in 2020. [O/R] Even though the oil contract was down about 20% since the beginning of the year, it was still up about 160% over the past eight months in the hope that global economies and energy demand will return as more governments resting for coronavirus locks. Analysts said these higher oil prices have prompted several energy companies to drill more.
Looking ahead, most energy companies have said they plan to cut spending in 2021 while maintaining a focus on improving employment rather than just increasing productivity.
To date, the total number of oil and gas rigs active in the United States has averaged 433. Most rigs produce both oil and gas.
Reporting by Brijesh Patel in Bengaluru; Edited by Howard Goller