Oil Drilling Hits a Low Record |
[ Time:2020-07-06 | Hits:412 ] |
| Baker Hughes reported on Thursday that the number of active oil and gas RIGS in the U.S. fell another two this week to 263, finally edging down for the second time after a long period of heavy losses. The number of active oil and gas RIGS in the US has continued to decline over the past 17 weeks.The number of oil and gas RIGS is now 700 lower than at the same time last year. The number of oil RIGS fell by three this week, bringing the total number of RIGS drilled to 185 from 788 a year earlier, according to Baker Hughes.The number of active natural-gas RIGS in the US rose by one to 76.That compares with 174 RIGS in the same period last year. This week, the total number of RIGS in Canada increased by five to 18.The number of oil and gas RIGS in Canada fell by 102 compared with the same period last year. Brent crude rose 1.16 percent to $43.56 a barrel and WTI crude rose 1.31 percent to $40.35 on the news. Despite the recovery in oil prices, US oil and gas companies are scrambling for credit as low prices cause lenders to tighten credit lines. Since the spring lending season, oil and gas lenders have limited their ability to borrow to about 20%, according to a media analysis.The combined borrowing base of nearly 40 North American oil companies has been cut by $7.5bn. Twice a year, the company and its creditors re-evaluate the available credit line based on the value of the company's reserves.However, these valuations have fallen sharply this year because of low oil prices.Much of the credit line available to oil and gas companies has already been used and will be depleted unless oil prices recover quickly, media reports say. Reminder: U.S. oil drillers cut drilling for the ninth week in a row, and Russia's energy minister said oil production cuts could ease in August. |