US Drillers Add Oil Rigs For First Week In Three | Rigzone

July 27 (Reuters) – US energy companies this week added oil rigs for the first time in the past three weeks as drillers

That move higher came in the wake of recent declines in US crude prices, which are on track to fall for a fourth week in This year, we were talking about tensions between the US, China and Europe could cause oil demand.

Drillers added three oil rigs in the week to July 27, bringing the total count to 861, General Electric Co Baker Hughes energy services firm said in its close followed report on Friday.

For the month, the oil rig count rose in the month of June.

More than half the total oil rigs in the Permian basin in west Texas and eastern New Mexico, the nation's biggest shale oil field. (19659005) The US rig count, an early indicator of future output, is higher than a year ago when 766 rigs were active as energy companies have been ramping up production in anticipation of higher prices in 2018 than previous years.

So far this year, US oil futures have averaged $ 66.11 per barrel. That compares with averages of $ 50.85 in 2017 and $ 43.47 in 2016.

Looking ahead, futures are trading near $ 68 for the balance of 2018 and about $ 65 for calendar 2019.

In anticipation of higher prices in 2018 than 2017, These financial services companies have indicated that they have provided guidance to 13 percent increase this year in capital expenditure.

Cowen said those E & Ps expect to spend a total of $ 81.7 billion in 2018, up from an estimated $ 72.1 billion in 2017.

Analysts at Simmons & Co, energy specialists at US investment bank Piper Jaffray, this week forecast average total oil and natural gas rig count would rise from 876 in 2017 to 1,033 in 2018, 1,092 in 2019 and 1,227 in 2020.

Since 1,048 oil and gas rigs were already in service, drillers would only have to add a handful of rigors during the rest of the year to hit Simmons' forecast for 2018.

So far this year, the United States has averaged 1,009. That keeps the total count for 2018 on track to be the highest since 2014, which averaged 1,862 rigs.

The US Energy Information Administration (EIA) This year, the US Energy Information Administration (EIA) will produce a high record 10.8 million barrels per day (bpd) in 2018 and 11.8 million bpd in 2019 from 9.4 million bpd in 2017.

The current all-time US annual output peak was in 1970 at 9.6 million bpd, according to federal energy data.

(Reporting by Scott DiSavino Editing by Susan Thomas)

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