Since the OPEC meeting decided to increase production in stages on April 1, Baker Hughes reported on Thursday that the number of oil rigs in the United States increased by 13 units during the week, reaching 430 units.
Baker Hughes data shows that the United States has cut 234 drilling rigs since April last year. The number of oil drilling rigs decreased by 225 compared with the same period last year, and the production of natural gas drilling rigs decreased by 9 units.
The U.S. oil industry was hit particularly hard in 2020, which was the most disruptive year for the global oil and gas market. The U.S. rig count plummeted by about 75% in the second quarter of 2019.
The 2020 downturn is unprecedented, as is the collapse in rig activity levels, which is far more severe than any before. As oil prices rebounded to $40/barrel in the second quarter of 2020 and the number of oil rigs bottomed out, many producers cautiously began to redeploy.
Now, as oil prices rise back above $60, the US fracking giant is also preparing for a recovery.
American Pioneer Natural Resources announced on Thursday that it will acquire DoublePoint Energy, a privately held oil and natural gas company, in a transaction valued at approximately US$6.4 billion. This is Pioneer’s second recent acquisition, following its $4.5 billion acquisition of Parsley Energy in October.
The transaction will give Pioneer approximately 97,000 net contiguous acres, bringing Pioneer’s total footprint to more than 1 million acres.
As more U.S. oil companies start turning drill pipes, more U.S. oil will be shipped to the market. I don’t know whether OPEC’s nightmare has begun, but what is confirmed is that the oil market has begun to recover. </p
