U.S. energy company adds oil and gas rigs for the second consecutive week

According to a report by EnergyWorld.

Energy services company Baker Hughes (Baker Hughes) said in its much-watched report on Friday that the number of oil and gas drilling rigs increased by 8 in the week ending May 7 to 448, which is the number since April 2020.

This brings the total number of drilling rigs to 74, an increase of 20% over the same period last year.

This week, US oil rigs increased by two to 344, and natural gas rigs increased by 7, which is the most weekly week since December 2018 and the highest week since March 2020, reaching 103 units.

Some energy companies have raised their spending plans for 2021 after cutting spending in the past two years, and well completion and drilling activities are gaining momentum.

However, since most companies focus on shareholder returns rather than output growth, the output growth rate is not large, and the drilling business has been growing moderately.

Commodity intelligence company Kpler said that listed companies prefer to retain cash to increase shareholder returns rather than increase capital expenditures, as in the case of West Texas Intermediate (WTI) crude oil above $60.

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　　James Williams of WTRG Economics in Arkansas said that our prospects are still optimistic.

　　Enverus, an energy data provider that has its own number of rigs, said the number of rigs in use remained stable at 524 in the week ending May 5.

　　Enverus stated that Pioneer Natural Resources Co is still the most active operator, with 30 drilling rigs (a year-on-year increase of 21), including the addition of DoublePoint Energy after the acquisition of DoublePoint Energy on May 4.

　　Hao Fen Translated from Energy World Network

　　The original text is as follows:

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

　　US energy firms added oil and natural gas rigs for a second week in a row as higher oil prices prompted some drillers to return to the wellpad.

　　The oil and gas rig count, an early indicator of future output, rose eight to 448 in the week to May 7, its highest since April 2020, energy services firm Baker Hughes Co said in its closely followed report on Friday.

　　That put the total rig count 74 rigs, or 20%, higher than this time last year.

　　US oil rigs rose two to 344 this week, while gas rigs rose the seven, the most in a week since December 2018, the highest since March 2020, to 103.

　　Completions and drilling activity have good momentum after some energy firms raised spending plans for 2021 after cutting over the past two years.

　　But as the increases have been small with most firms focusing on shareholder returns over volume growth, drilling captivity has been growing moderately.

　　"Listed companies prefer to preserve cash to improve shareholders returns instead of raising capex as was historically the case with WTI above $60," commodity intelligence company Kpler said.

　　US financial services firm Cowen & Co said the independent exploration and production (E&P) companies it tracks plan to increase spending about 1% in 2021 versus 2020.
That follows capex reductions of roughly 49% in 2020 and 12% in 2019.

　　"Our outlook remains positive .
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It is likely that rig count will be near 600 before the end of the year," said James Williams at WTRG Economics in Arkansas.

　　Enverus, a provider of energy data with its own rig count, said the number of active rigs in the week to May 5 held steady at 524.

　　Enverus said the most active operator continues to be Pioneer Natural Resources Co at 30 rigs (up by 21 year-over-year), which includes nine that were just added through the acquisition of DoublePoint Energy on May 4.