Reuters
U.S. oil rigs rose eight to 275 this week, their highest since May, while gas rigs rose one to 84, their highest since April, according to Baker Hughes data.
U.S. crude futures soared to almost $52 this week, their highest since February 2020.
Those higher prices have already encouraged energy firms to drill much more since the total rig count fell to a record low of 244 in August, according to Baker Hughes data going back to 1940. While the rig count fell by 454 in 2020, its second annual decline in a row, it rose in the fourth quarter in its biggest increase since the second quarter of 2017.
Looking forward, however, U.S. crude futures were trading lower at around $51 a barrel for the balance of 2021 and $48 for calendar 2022, which could prompt producers to reduce activity.
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