Industry at a Glance
Crude prices fell in tandem with broader market, as apprehension that higher interest rates, intended to fight inflation, will trigger a global economic recession. WTI fell 3.6%, to average $84.37/bbl in November, with Brent trading at $91.42/bbl, down 2% compared to October.
U.S crude output increased 150,000 bopd to 12.25 MMbopd in November, but Saudi Arabia reduced its production by 490,000 bopd, to average 10.47 MMbopd. It appears output from Russia has hovered around 9.7 MMbopd since April 2022, when output decreased because of Western bans on Russian oil imports, due to its invasion of Ukraine in February 2022. Reports indicate Russian output is up slightly in November to 9.8 MMbopd.
The reduction in crude price did not negatively impact U.S. drilling, as the rig count surged to 789 in November, 21 more than reported in October. Texas gained six rigs to average 372, with an eight-rig increase in District 8, while Oklahoma added three rigs, up to 68. The DUC count has started to build again after many months of reductions. In November, there were 4,443 DUCs in the U.S., 22 more than the month-ago tally of 4,421. Month-over-month gains were reported in the Haynesville and Niobrara regions.
International activity also increased, averaging 1,125 rigs in October, 35 more than were running in September. The increase was attributed mainly to an 18-rig gain in the Middle East (326), combined with an eight-rig jump in Latin America (188). WO
