U.S. energy firms cut 21 oil rigs this week, the biggest decline since February 2016, even as the United States is expected to reinforce its leadership as the world’s number one crude producer this year.
Source: www.reuters.com
As per energy services firm Baker Hughes, U.S. oil companies cut 21 oil rigs to 852 for the week to Jan. 18. This represents the biggest decline in nearly three years. However, the rig count is still much higher than a year ago when 747 rigs were active after energy companies boosted spending in 2018 to capture higher prices that year. Continued drilling activity helped the U.S. become the largest crude oil producer in 2018. This dominance is expected to continue into 2019 and 2020. Last week U.S. crude output rose to a peak of 11.9 million barrels per day (bpd) and is expected to hit a new record of more than 12 million bpd this year. This number is expected to climb to nearly 13 million bpd in 2020, as per the U.S. Energy Information Administration.
