Industry at a Glance

Oil prices rose slightly again in July, following lower final numbers for June’s prices. Future compiled prices for August were predicted to be lower, however.

Olivia Kabell, Associate Editor, World Oil

Oil prices rose slightly again in July, following lower final numbers for June’s prices. Future compiled prices for August were predicted to be lower, however. Among the three major crudes, Brent again had the greatest change, with a 3.5% increase to $81.80, while WTI posted a 2.5% jump to $85.15. Dubai Fateh, meanwhile, posted the most modest increase, up 2.1% to $83.9/MMbtu.

The U.S. monthly production average held steady in June for the most part, deviating very little from May’s 13.2 MMbpd and representing a 5.4% increase from production a year ago. In broader worldwide production, total oil supply was up 0.3%, at 97.19 MMbpd.

U.S. natural gas prices returned to patterns of decline from earlier in the year, dipping down to an average $2.07/MMbtu in July. In contrast, the 12-month average posted an increase to $2.56/MMbtu. Even so, EIA estimates predicted a slight recovery in August when final numbers were compiled.

U.S. drilling activity declined again in July, continuing a now three-month decrease in rig count, with 586 units in July, though overall activity was fairly steady. Texas was the only state to fluctuate for the month, with four units lost between Districts 2, 8 and 8A and a single rig gained in District 5.

Drilled but uncompleted numbers for the U.S. broke from a several-month decline with a slight increase in July, despite continued year-on-year decline overall. The final DUC count came to 3,139 wells, with a scant four-unit gain on June numbers. The Bakken and Eagle Ford regions posted the largest declines of 26.2% and 37.2% respectively, with declines across Appalachia (-5.5%), the Permian (-10.8%) and Lower 48 States (-8.9%) as well. Per historical trends, Haynesville posted the only increase (2.9%).

International rig count. Earlier May declines in drilling activity were partially offset by a 30-rig increase in June. Year on year numbers also managed to continue a slight increase. Canada was the standout in activity, due to increases following the annual thaw, but small increases also appeared in the Asia-Pacific, Latin American, and Middle Eastern regions. Europe, meanwhile, posted decreases, notably in their offshore units.