US drillers add oil and gas rigs for a record 23 months – Baker Hughes

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U.S. energy companies this week added oil and gas rigs for a second straight week, in a record 23-month streak of increases, as high crude prices and government incentives prompted drillers to return at the well.

The oil and gas rig count, an early indicator of future production, rose by 13 to 753 in the week of June 24, its highest since March 2020, energy services firm Baker Hughes said Friday. Co in his closely followed report.

Baker Hughes said that brings the total number of platforms to 283, or 60%, from the same period last year.

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U.S. oil rigs rose 10 to 594 this week, their highest since March 2020, while gas rigs gained 3 to 157, their highest since September 2019.

This sent the total number of oil and gas rigs soaring to a record 23 consecutive months, gaining 26 in June. He also increased the tally for seven straight quarters, the longest winning streak since 2011.

The number of oil rigs rose for a record 22 consecutive months, rising by 20 in June. It also rose for a seventh quarter, the most quarters since 2012.

The number of gas rigs increased by six in June, rising for a 10th consecutive month, tying the record set in May 2010. It also increased the number of gas for seven consecutive quarters, tying the record set in 2004.

Even though the total number of rigs has increased for seven straight quarters, oil production this year is expected to remain below pre-pandemic record highs as many companies focus more on getting money back to investors. and debt repayment rather than increasing production. They also say supply chain issues are hurting their operations.

U.S. crude production was on track to drop from 11.2 million barrels per day (bpd) in 2021 to 11.9 million bpd in 2022 and 13.0 million bpd in 2023, according to energy data federal. That compares to a record 12.3 million bpd in 2019.

US crude prices have risen around 42% to around $107 a barrel since the start of the year, boosted by Moscow’s invasion of Ukraine, prompting the US government to urge drillers to produce more of oil and gas to reduce domestic prices. (Reporting by Scott DiSavino Editing by Marguerita Choy)