The U.S. oil drilling rig count rose for the fourth week in a row and ended the month sharply higher as producers plan to boost output as they reap profits from crude trading near three-year highs.
Drillers have added five oil rigs in the week leading up to April 27, bringing the total count to 825, which is the highest level since March 2015 confirmed General Electric Co’s Baker Hughes energy services firm.
For the month of April, drillers added 28 oil rigs after cutting two rigs in March. So far this year, the total rig count has risen by 78.
The U.S. rig count, an early indicator of future output, is much higher than a year ago when 697 rigs were active. Energy companies have been steadily increasing spending on drilling and completions since mid-2016 when crude prices began recovering from a two-year crash.
U.S. producers are accelerating shale drilling mostly in the Permian Basin of west Texas and New Mexico, the largest U.S. oilfield, lifting the nation’s output this year to more than 10 million barrels per day, which is a new record.
In anticipation of higher prices in 2018 versus 2017, U.S. financial services firm Cowen & Co said 58 of the roughly 65 exploration and production (E&P) companies they track have already provided guidance indicating an 11 percent increase this year in planned capital spending.
So far this year, the total number of oil and gas rigs active in the United States has averaged 977, up sharply from an average of 876 rigs in 2017 and 509 in 2016, and a shade below 978 in 2015. Most rigs produce both oil and gas.
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