Crude prices rallied in September, as coal and natural gas shortages coincided with rebounding demand from economies recovering from the pandemic. Prices for WTI ($72/bbl) and Brent ($75/bbl) were up 5.8% and 5.3%, respectively. Despite consistently higher oil prices over the last several months, U.S. shale drillers continued to show restraint, limiting activity in favor of working down the DUC backlog. In September, there were 5,385 DUC wells in the U.S., 29% fewer than the year-ago tally of 7,592. U.S. drilling activity increased slightly, with an average 508 rigs working in September, five more than in August. The largest gain was in Texas, which experienced an increase of six rigs to average 237 in September. International activity averaged 933 rigs in August, 37 more than in July.
- 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)
