North America’s onshore rig count remains strong, with an estimated 100 more rigs likely to be raised through year’s end, Evercore ISI said Monday.
Articles from Evercore
With West Texas Intermediate crude oil prices charging toward $70/bbl, concerns are overblown that the U.S. rig count will slow, according to Evercore ISI.
Onshore permit activity continues to quicken, a sign the U.S. rig count could strengthen into the new year.
The United States added three natural gas-directed rigs for the week ended Friday, but a decline in oil drilling saw the domestic count fall by one overall, according to data from Baker Hughes Inc. (BHI).
A pivotal year awaits exploration and production (E&P) companies worldwide, with capital spending on course to increase 7% overall, led by a 15% gain in U.S. onshore-weighted budgets, according to Evercore ISI’s annual survey.
After more than a month of retrenchment, the U.S. rig count bounced back for the week ended Friday on growth in oil-focused activity in the Permian and Midcontinent, according to data from Baker Hughes Inc. (BHI).
The domestic rig count could be nearing an inflection point as the current tally of weekly average drilling permits approaches 2014 levels, driven by higher commodity prices and “a strengthening macro outlook” for the industry, according to analysts with Evercore ISI.
Many people look back during the holiday season and reflect about how quickly the year has passed, but if “time flies when you’re having fun,” 2016 could not end soon enough for the oil and gas industry.
Analysts with Evercore ISI said they expect the oilfield services (OFS) sector will enjoy a “vigorous recovery” under a future Trump administration, complete with increasing rig and well counts and a recovery in commodity prices.
North America’s oil and gas operators, more than any group worldwide, are enduring the “most extreme” capital spending cuts, with expenditures likely to drop by 41% on average from 2015 and the onshore sector seeing the most pain, according to Evercore ISI.