U.S. drilling activity fell to an all-time low of 301 rigs during the week of May 29, with operators stacking 217 units during the month. That’s 638 rigs less than in May 2019, and it was the fourth consecutive week that the U.S. count fell to a new record low. However, the 11-MMbopd production cuts by OPEC+ started to produce results, with WTI ($28.40/bbl) and Brent ($29.50/bbl) surging 63% and 56% in May. Although COVID-19 is still wreaking havoc on the industry, the cooperative effort between the world’s major crude producers, which have removed roughly 11% of world supply, has brought much-needed stability to markets. Oil consumption increased in May, as several countries emerged from government-sponsored lockdowns. China led the recovery, with demand in May near pre-coronavirus levels.
- Management issues- Dallas Fed: Activity sees modest growth; outlook improves, but cost increases continue (October 2023)
- Industry at a glance (June 2023)
- Industry at a glance (May 2023)
- Management issues- Dallas Fed: Oil and gas expansion stalls amid surging costs and worsening outlooks (May 2023)
- Executive viewpoint (April 2023)
- Global offshore market is on the upswing (April 2023)
