Baker Hughes USA reports 9 rigs lost contract

U.S. Baker Hughes Drillers report reveals 9 oil rigs lost drilling contract

U.S. energy company Baker Hughes USA reports cutting nine oil drilling rigs this week, the biggest reduction since May 2016, following a recent dip in oil prices. The oil rig count dropped to 860 in the week ended Aug. 24, General Electric's Baker Hughes, an energy services company, said in its Friday report. US crude oil futures, trading around $24 a barrel, are down about 69% so far this quarter, leading the first quarterly decline since the second quarter of last year.

Reflection on the World Market

This week's prices end a run of seven straight declines, so Iran's sanctions could limit global supply that a trade war may not curb Chinese appetite for US oil. US rig counts show an early indicator of future production. Exactly one year ago, 759 rigs were active and after increasing production and joint efforts with OPEC (Organization of Petroleum Exporting Countries), energy companies were able to increase the number of offshore units. So far US Crude Oil is averaging $66,33 per barrel, compared to averages of $50,85 in 2017 and $43,47 in 2016. Looking ahead, Crude Oil will trade at $69 for the 2018 balance and $66 for the 2019 calendar.

Looking to the future

Analysts at Simmons & Co predict that the average total oil and gas rig count will increase from 876 to 1.031 in 2018, 1.092 in 2019 and 1.227 in 2020. So far, the total number of active oil and gas rigs in the United States , reached an average of 1.014. That keeps the total count for 2018 on track to be the highest since 2014, averaging 1.862 platforms. Most platforms produce oil and gas.

Be the first to react!

0

Liked

0

Amei

0

Haha

0

Uau

0

Sad

0

grr