May 2022 /// Vol 343 No. 5)

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Industry at a glance

Despite restricted Russian supply, due to the war in Ukraine, crude prices slipped in April. WTI dropped 6.2% to $101.78/bbl, with Brent trading at $101.78/bbl, down 13.2% compared to March. Despite lower prices, U.S. operators finally started ramping up drilling activity, which is typically the case in a high-price environment.

Craig Fleming

Despite restricted Russian supply, due to the war in Ukraine, crude prices slipped in April. WTI dropped 6.2% to $101.78/bbl, with Brent trading at $101.78/bbl, down 13.2% compared to March. Despite lower prices, U.S. operators finally started ramping up drilling activity, which is typically the case in a high-price environment. The rig count averaged 690 units in April, up 4% from 662 counted in March. The majority of the increase was on the Texas side of the Permian basin, where operators added 17 rigs, an increase of 10%. In April, there were 4,223 DUCs in the U.S., 38% fewer than the year-ago tally of 6,857. DUCs in the Permian have plunged 57% on a y-o-y basis. International activity averaged 1,000 rigs in March, 33 less than in February. 

The Authors ///

Craig Fleming Craig.Fleming@WorldOil.com

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