U.S. energy firms cut oil rigs for a second week in a row as more producers, like Occidental Petroleum Corp, turned conservative in their 2019 drilling plans due to uncertainty over a recovery in crude prices.
Source: in.reuters.com
For the week to Jan. 11, U.S. drillers cut four oil rigs bringing the total count down to 873, as per data from energy services firm Baker Hughes. This is the second weekly decline in a row as more producers turned conservative in their 2019 drilling plans amid uncertainty in crude prices. Although, when compared to the same period last year this rig count is still considerably higher as only 752 rigs were claimed to have been active. While Occidental, one of the largest producers in the Permian Basin, said on Monday it expects to spend $4.4 billion to $5.3 billion this year, compared with ~$5 billion spent in 2018. Shale producers expect to reduce their drilling activity in 2019 following a ~40% decline in crude prices during the last quarter of 2018, and mounting fears of a global supply surplus.
