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US drillers add oil rigs for second week in a row - Baker Hughes

Gasoil News - Published on Tue, 19 Feb 2019

Image Source: Reuters
Reuters reported that US energy firms this week increased the number of oil rigs operating for a second week in a row amid concerns that crude supplies will swamp global demand as US output keeps growing from record levels. Companies added three oil rigs in the week to February 15, bringing the total count to 857, General Electric Co's Baker Hughes energy services firm said.

The US rig count, an early indicator of future output, is still higher than a year ago when 798 rigs were active after energy companies boosted spending in 2018 to capture higher prices that year. Thanks to a shale boom, the United States became the world's top crude producer last year and record output is expected to rise 1.5 million barrels per day to 12.4 million bpd this year, the US Energy Information Administration said in a monthly forecast.

The International Energy Agency warned in its monthly report this week that the global oil market will struggle this year to absorb fast-growing crude supply from outside the Organization of the Petroleum Exporting Countries, highlighting US output growth.

However, US drillers have removed on average 28 rigs this year so far as a lack of pipeline capacity in the Permian basin, the largest US oil shale field, landlocked some output and as investors pushed producers to reduce spending and boost shareholder returns.

Source :

Posted By : Rabi Wangkhem on Tue, 19 Feb 2019
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