January 2022

Industry at a glance

Craig Fleming / World Oil

Despite increased demand, crude prices retreated in December on continued concerns over the rapid spread of the Covid omicron variant and uncertainty about the global economy. WTI and Brent crude fell 9.4% and 8.5%, respectively, to trade at $71.71 and $74.17/bbl. Despite lower oil prices, U.S. drilling activity surged 3.4%, with an average 579 rigs working in December. The largest gain was in Texas, which experienced an increase of nine rigs to average 275. New Mexico added eight for a total of 91. U.S. drillers continued to work down the DUC backlog. In December, there were 4,616 DUCs in the U.S., 37% fewer than the year ago tally of 7,298. DUCs in the Permian stood at 1,446 in December, a 59% decrease on a y-o-y basis. International activity averaged 984 rigs in November, 18 more than in October.












About the Authors
Craig Fleming
World Oil
Craig Fleming Craig.Fleming@WorldOil.com
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