OLIVIA KABELL, Associate Editor, World Oil
Oil prices faced another dip in September, following a recovery in August levels. Prices are expected to rise for October, when the final data are compiled. Of the three major crudes, WTI suffered the largest dip (-8.8%), down to $70.24/bbl. Brent followed close behind, with an 8.2% drop to $74.02/bbl, while Dubai Fateh managed the smallest loss of the group, with a 6.1% drop to $73.40/bbl.
Updated numbers from the U.S. Energy Information Administration showed that the U.S. monthly production average remained fairly steady at 13.2 MMbpd in June, as compared to the figure for May. In worldwide production, the global output of crude and condensate was down 0.3%, at 81.32 MMbpd. OPEC production was off 1.3%, at 28.92 MMbopd, but much of that was compensated for by small gains in other regions.
U.S. natural gas prices made a slight recovery in September, rising to $2.28/MMbtu. Meanwhile, the 12-month average posted a dip from August, resting at $2.48/MMbtu. EIA estimates suggest a continued upward trend, once data for October are compiled, as colder weather begins to return.
U.S. drilling activity eked out a single-unit gain in September, despite multi-unit fluctuations nationwide. Multi-rig losses occurred in Colorado, New Mexico and Pennsylvania, with single unit losses in California, North Dakota and Utah. These were offset by minor gains across Louisiana, Texas, Oklahoma, West Virginia and Wyoming.
Drilled but uncompleted well count for the U.S. continued its historical decline in September, in addition to a continued year-on-year decline (-10.6%). The final count came to 3,065 wells, down 48 units from August’s numbers. Per historical trends, the Bakken and Eagle Ford regions showed the largest year-on-year declines of -20.5% and -37.7%, respectively. Appalachia, the Permian and the remaining Lower 48 states posted similar dips at -9.6%, -2.4% and -6.8%, respectively. Meanwhile, the Haynesville continued to show the only increase (1.3%).
International rig counts showed a 30-unit increase in September, building on earlier gains. Year-on-year numbers also showed a slight increase. The rise in activity was largely spread across Canada, Latin America, Africa and the Asia-Pacific region, largely in onshore units. Meanwhile the Middle East and Europe posted slight declines—namely onshore units in Europe, with a mix of onshore and offshore for the Middle East. WO
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