Baker Hughes: US Drillers Add Oil Rigs For 13th Week In A Row


April 13 (Reuters) - U.S. drillers added oil rigs for a 13th week in a row, with the number of active rigs rising to near a two-year high, as energy companies boost spending on new production to take advantage of a recovery in crude prices.

Drillers added 11 oil rigs in the week to April 13, bringing the total count to 683, the highest since April 2015, energy services firm Baker Hughes Inc said on Thursday.

At this time a year ago, there were 351 active oil rigs.

Much of the weekly gain can be attributed to Texas's Permian basin, which added eight rigs on the week. There are 339 active rigs in the Permian, located largely in the western part of Texas, 200 more than at this time last year.

U.S. crude futures were little changed on Thursday, and did not react much to the rig count figures. U.S. West Texas Intermediate was at $53.02 a barrel, down 9 cents, as of 1:24 p.m. EDT (1724 GMT).

Even as the world's major oil producing nations have attempted to reduce crude supply, U.S. inventories are at near-record highs at 533.4 million barrels. Overall domestic production has continued to climb, meanwhile, hitting 9.24 million barrels per day last week, according to the U.S. Energy Department.

The EIA had projected a 9.22 million bpd production rate for 2017 and expects production to hit a record 9.9 million bpd in 2018.

Analysts see U.S. energy firms boosting spending on drilling and pumping more oil and natural gas from shale fields in coming years with energy prices expected to climb.

That has unnerved the Organization of the Petroleum Exporting Countries, which is trying to reduce a glut that has persisted for about three years.

Futures for the balance of 2017 and calendar 2018 trade at around $54 a barrel, indicating expectations for stable prices going forward.

(Reporting by David Gaffen; Editing by Meredith Mazzilli)

Copyright 2017 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Project Manager
Expertise: Commercial Management|Project Management|Site Engineer
Location: LA
Expertise: Maintenance Manager|Process Technician|Site Engineer
Location: US
I&C Technician
Expertise: Instrumentation Technician|Maintenance Technician|Workshop
Location: Midland, TX
search for more jobs

Brent Crude Oil : $51.68/BBL 0.27%
Light Crude Oil : $49.25/BBL 0.74%
Natural Gas : $3.24/MMBtu 3.18%
Updated in last 24 hours