Drillers reduce active U.S. oil rigs by 1
HOUSTON — Oil explorers reduced rigs drilling in U.S. oilfields by one this week.
Working rigs targeting crude totaled 765, according to Baker Hughes data reported Friday. Producers ended 23 straight weeks of additions with a pullback at the end of June, breaking the longest stretch of continuous growth in three decades. Even so, more than twice as many rigs are drilling for oil now than in May 2016, when the count hit a low point of 316.
“It echoes what we’ve been expecting and what explorers and producers have been saying,” Andrew Cosgrove, senior analyst for energy and mining equity at Bloomberg Intelligence, said by telephone. “They’re dialing back some of their expectations for output in the second half of the year.”
The Eagle Ford basin in Texas bucked the trend by adding three rigs for a total of 70 working there. The Permian basin was unchanged, putting an end to three weeks of expansion.