CONTACT US
MENUMENU
  • About
    • About Us
    • KEA Serves
    • Careers
    • Client Portal
    • Contact Us
  • Real Estate
    • Commercial Real Estate
    • Auto Dealerships
    • Banking
    • Convenience Stores
    • Hospital & Health Care
    • Industrial
    • Multi-Family
    • Office
    • Restaurant
    • Retail
  • Energy
    • Oil & Gas
    • Midstream
    • Frac Sand & Mining
    • Renewable Energy & Conventional Generation
    • ESG Tax Partnership
  • Services
    • Real Property
    • Personal Property
    • Severance Tax
    • Sales Tax
    • Valuation
    • Incentives & Abatements
      • Chapter 313 School Value Limitation Consulting
      • Chapter 312 Tax Abatement Tax Consulting
  • News
    • Commercial Real Estate
    • Energy

August 31, 2021

U.S. Oil and Gas Rigs on the Rise for Third Week

The recent recovery of oil prices has U.S. drillers returning to the wellpad, as this is the third straight week in a row that U.S. energy firms added oil and gas rigs – indicating that things are definitely looking up for the country’s oil, gas, and energy industry.

Known to be an early sign of what the expected output will be, the oil and gas rig count hit 503 during the week of August 20th. According to industry experts, this is the highest U.S. oil and gas rig count since April 2020. This recent addition of rigs brings the new count to almost double what it was last year at this time. The count in August 2020 was 254 total rigs.

Last week, U.S. crude CLc1 futures traded at around $63 a barrel. This makes the seventh session in a row that decreased, with numbers heading towards the record setting three-month lows that have been seen since the onset of the new Delta variant of COVID-19. The virus has taken a tremendous toll on the energy industry and is wreaking more havoc by causing closings, restrictions on travel, and other factors that affect the oil and gas industry as a whole.

Overall, though, energy firms are on board with raising their spending, indicating that oil prices are up about 29% thus far in 2021. Though additional spending is occurring with more expected, it appears the limits are very low. Most energy companies are still focusing on increasing cash flow, seeing a huge reduction of their debt, and increasing returns for their shareholders. Many industry experts and analysts do not expect the increased budgets to increase output, though, and indicate that it will simply replace the natural declines currently occurring in well production.

According to the Energy Information Administration’s latest report of monthly drilling productivity, the U.S. shale oil output is predicted to rise to 8.1 million barrels per day next month, meaning September will be the highest output since April 2020.

This being said, government projections predict the total oil production to decrease to 11.1 million barrels per day this year, dropping from 11.3 million barrels per day seen in 2020. Production is then expected to increase to 11.8 million barrels per day in 2022. The record for year for oil production in the U.S. was in 2019, which when we saw an annual high of 12.3 million barrels per day.

Share:
TAGS: gas oil U.S
About KE Andrews
More Posts
  • Proposition 120 Colorado - What Is It?
    Proposition 120 Colorado - What Is It?
    July 6, 2022
  • Why Is Rent So High For Warehouses?
    Why Is Rent So High For Warehouses?
    July 19, 2022
  • More Than $1 Billion in Disney Debt, Taxpayers of Florida May Be Footing the Bill
    More Than $1 Billion in Disney Debt, Taxpayers of Florida May Be Footing the Bill
    April 25, 2022
  • West Virginia Rejects Natural Gas Property Tax Rule
    West Virginia Rejects Natural Gas Property Tax Rule
    February 21, 2022
  • Orange County Support a California Budget of $8.8 Billion
    Orange County Support a California Budget of $8.8 Billion
    June 27, 2022
Search
Scroll

KE Andrews is a state and local tax firm founded in 1978 that provides services nationwide. Our core business units are property tax, severance tax, and sales & use tax.

CONTACT US

Our Main Office

2424 Ridge Rd., Rockwall, TX

Write Us

Email: contact@keatax.com

Call Us

469-298-1594

Menu
  • Real Property
  • Personal Property
  • Commercial Real Estate
  • Oil & Gas
  • Sales Tax
Copyright @ 2022 - KE Andrews. All Rights Reserved.
  • Home
  • Contact Us
  • ABOUT
    • About Us
    • KEA Serves
    • Careers
  • REAL ESTATE
    • Commercial Real Estate
    • Auto Dealerships
    • Banking
    • Convenience Stores
    • Hospital & Health Care
    • Industrial
    • Multi-Family
    • Office
    • Restaurant
    • Retail
  • ENERGY
    • Oil & Gas
    • Midstream
    • Frac Sand & Mining
    • Renewable Energy & Conventional Generation
  • NEWS & INSIGHTS
    • Commercial Real Estate
    • Energy
  • SERVICES
    • Real Property
    • Personal Property
    • Severance Tax
    • Sales Tax
    • Incentives & Abatements
    • Valuation Services