US Oil Rig Count Lowest Since Dec 2009

Posted by Eric Haun
Friday, February 19, 2016
The number of oil rigs in the United fell for a ninth straight week to the lowest level since December 2009, data showed on Friday, as energy firms continued to cut spending amid the collapse in crude prices.
 
Drillers cut 26 rigs in the week ended Feb. 19, bringing the total rig oil count to 413, oil services company Baker Hughes Inc said in its closely followed report.
 
The number of oil rigs in operation were less than a third of the 1,536 in service during the same week a year ago.
 
Oil has shed 70 percent from highs above $100 a barrel in a selloff that has seen little pause over the past 20 months, forcing a collapse in the rig count as well. Since last Friday though, some traders believed the market had seen a bottom on talk that OPEC was on a plan to reign in production.
 
This week, Saudi Arabia, the lynchpin of the Organization of the Petroleum Exporting Countries, along with Qatar and Venezuela, and non-OPEC member Russia, proposed to freeze output at January's highs.
 
Iran, the main stumbling block to any production control due to its zeal to recapture market share lost to sanctions, welcomed the plan without commitment. Iraq was also non-committal.  
 
Bank of America Merrill Lynch said in a note on Friday that if a Saudi-Russia plan to freeze at January's highs worked and gasoline fuel prices remained affordable, crude prices could recover to around $47 a barrel by June. 
 
On a broader scale, some analysts forecast the rig count will decline in coming months before recovering later this year in tandem with an expected rise in crude prices.
 
Front-month U.S. West Texas Intermediate (WTI) crude futures were trading around $29 a barrel.
 
Looking forward, crude futures were fetching about $35 for the balance of 2016 and just around $40 for 2017.
 
U.S. shale producers, for the first time in months, were placing new hedges to lock in 2017 prices at around $45 a barrel, prompting price recovery at the back end of the U.S. crude futures curve. 
 
The activity reflects expectations of growing investor and lender pressure to safeguard heavy debt requirements down the road, as well as declining drilling costs, allowing companies to break even at lower prices.
 
 
(Reporting by Barani Krishnan; Editing by Marguerita Choy)

Energy

Keppel to Deliver First North Sea FPSO

Keppel Offshore & Marine (Keppel O&M)'s wholly-owned subsidiary Keppel Shipyard Ltd (Keppel Shipyard) is on track to deliver a Floating Production Storage and Offloading

BP, ExxonMobil, ConocoPhillips 'Quit' Alaska LNG Project

BP, Conoco Phillips, and Exxon Mobil said that the 65-billion dollar megaproject would be too unprofitable for them to move into the next phase of development.

ABS Makes it Safer to ‘Walk to Work’

ABS announced the publication of The ABS Guide for Certification of Offshore Access Gangways. The new Guide addresses certification for safety systems used for “walk to work” (W2W) crew transfers.

News

Coast Guard Foundation Awarded 128 Scholarships

The Coast Guard Foundation, a non-profit organization committed to the education and welfare of all Coast Guard members and their families, announced today that

Keppel to Deliver First North Sea FPSO

Keppel Offshore & Marine (Keppel O&M)'s wholly-owned subsidiary Keppel Shipyard Ltd (Keppel Shipyard) is on track to deliver a Floating Production Storage and Offloading

NASA May Send Submarine to Titan

NASA has unveiled plans to send a submarine into the depths of the largest ocean of Saturn's biggest moon, Titan in a bid to explore the depths of its largest ocean.

Offshore Energy

BP, ExxonMobil, ConocoPhillips 'Quit' Alaska LNG Project

BP, Conoco Phillips, and Exxon Mobil said that the 65-billion dollar megaproject would be too unprofitable for them to move into the next phase of development.

Onshore Spending on the Cusp of Recovery?

DW’s recently released quarterly World Oilfield Services Market Forecast (OFS) and World Oilfield Equipment Market Forecast (OFE) continue to suggest 2016 will

Heavy Lifting: Giant Pipe Racks Shipped for New FPSO

From Brazil to China and then back to Brazil, five pipe racks and three modules weighing a total of 1,871.51 metric tons and measuring 24,075 m³ will be transported

 
 
Maritime Contracts Maritime Security Maritime Standards Navigation Offshore Oil Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0839 sec (12 req/sec)