U.S. drillers add oil rigs for second week in a row -Baker Hughes

Financial Post | Feb 14, 2020 at 6:08 PM
  • U.S. energy firms added oil rigs for a second week in a row as crude prices, which have dropped about 15% this year, were set to rise this week as investor concerns began to ease over the long-term economic impact of the coronavirus.
  • The oil rig count, an early indicator of future output, dropped by an average of 208 rigs in 2019 after rising 138 rigs in 2018 as independent exploration and production (E&P) companies cut spending on new drilling in response to investor demands to improve financial returns in a low energy price environment.
  • The Energy Information Administration this week cut its growth outlook, forecasting U.S. crude production will rise by 960,000 barrels per day (bpd) in 2020 to a record of 13.2 million bpd, below its previous forecast for a rise of 1.06 million bpd.