US Tankers Cut Appliances for Fifth Consecutive Week – Baker Hughes

March 22 (Reuters) – US energy companies this week reduced their number of oil rigs in operation for the fifth straight week to their lowest level in nearly a year, as independent producers turn their plans into reality to reduce spending on new drilling, the government forecasts growth for shale production.

The drillers shut down nine oil rigs in the week leading up to March 22, bringing their total to 824, the lowest level since April 2018, Energy General Manager Baker Hughes said Friday. Electric Co. in his report closely followed. RIG-OL-USA-IHB

This is the first time that the number of rigs has been declining for five weeks in a row since May 2016, a year in which it has declined for eight consecutive weeks.

The number of US rigs, an early indicator of future production, is still a bit higher than a year ago, while 804 rigs were in business after the companies in the sector of energy had increased their spending in 2018 to capture higher prices that year.

Drilling this year has slowed with the contraction in the number of rigs in the last three months, with independent exploration and production companies cutting back on their spending as they focus on earnings growth rather than on the increase in production. Crude prices are expected to decrease in 2019 compared to 2018.

US oil production from the seven largest shale formations, the main producing regions of the country, is expected to increase by 85,000 barrels a day in April to a record 8.59 million bpd, the US Energy Information Administration announced on Monday. its monthly report on drilling productivity. .

The increase, however, would be the smallest monthly increase since May 2018, continuing the trend of contraction in growth.

The EIA already predicted last week that total crude oil production would increase more slowly than expected in 2019, while maintaining a record high of 12.3 million bpd, compared to 11.0 million bpd in 2018. , a historical record.

US crude oil futures climbed more than $ 60 a barrel this week for the first time in four months as a result of reduced supply from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, as well as US sanctions against Iran and Venezuela.

Crude futures are trading at around $ 59 per barrel for the 2019 balance and close to $ 58 in 2020.

US financial services firm Cowen & Co said this week that forecasts by exploration and production companies (E & P) suggest a percentage decline in average investment spending for drilling and completions in 2019 compared to 2018.

Cowen said independent producers expect to spend about 11 percent less in 2019, while international oil companies plan to spend about 16 percent more.

Increasing investment by majors demonstrates recognition that Exxon Mobil Corp., Chevron Corp, Royal Dutch Shell and BP Plc have largely missed the first phase of Permian shale bonanza, while more agile, pioneering producers shale drilling technology, rented the cheap.

In total, Cowen said that all E & P companies he follows have announced that they would spend about $ 81.0 billion in 2019, up from $ 85.5 billion in 2018 .

According to Baker Hughes, 1,016 oil and gas platforms were active in the United States this week. Most platforms produce oil and gas.

Analysts at Simmons & Co, energy specialists at US investment bank Piper Jaffray, expect this week that the average number of oil and gas platforms combined will rise from 1,032 in 2018 to 999 in 2019, before moving to 1,087 in 2020. It was the same prognosis. since the beginning of the year.