US drillers add oil rigs for second week

(Dh66) below US benchmark prices.

More than half the total US oil rigs are in the Permian where active units fell by five last week to 473, the lowest since June.

Pioneer Natural Resources Co, one of the Permian’s largest producers, said last week it plans to reduce 2019 capital expenditures by 11 per cent, or about $350 million, slowing its production growth.

US crude futures were trading around $55 a barrel on Friday, up about 5 per cent for the week as Opec-led production cuts encouraged investors.

Looking ahead, crude futures were trading around $57 a barrel for the balance of 2019 and calendar 2020.

The EIA projected West Texas Intermediate spot crude would average $54.79 in 2019 and $58.00 in 2020, down from an average of $65.06 in 2018.

US financial services firm Cowen & Co said last week that early indications from the exploration and production (E & P) companies it tracks point to a 3 per cent decline in capital expenditures for drilling and completions in 2019. In total, Cowen said those E & P companies spent about $93.1 billion in 2018.

There were 1,051 oil and natural gas rigs active in the United States last week, according to Baker Hughes. Most rigs produce both oil and gas. Aramco has many reasons to expand its ‘playground’

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