Africa’s biggest oil producers, Nigeria and Angola will struggle to raise output in the next five years as they do not rank important in oil major’s investment priorities, according to data and analytics company GlobalData.
The number of active oil and gas drilling rigs in the United States declined this week, signalling continued caution among producers despite crude prices remaining well above year-ago levels.
On Friday, Brent crude traded at $95.96 per barrel, down 4.70 percent on the day but still more than $8 higher than a week earlier.
West Texas Intermediate (WTI) also eased 4.22 percent to $88.30 per barrel, reflecting profit-taking after a sharp rally driven by concerns over potential supply disruptions.
Data released by Baker Hughes on Friday showed the total US rig count fell by one to 587, although the figure remained 45 rigs higher than the same period last year.
Oil-directed drilling accounted for the decline, with the number of active oil rigs dropping by two to 450, while gas rigs increased by one to 127.
The number of miscellaneous rigs was unchanged at 10. Compared with a year earlier, the US has 35 more oil rigs and five more gas rigs in operation.
Meanwhile, the latest figures from the US Energy Information Administration (EIA) showed crude oil production edged lower during the week ended July 17.
US crude output averaged 13.798 million barrels per day (bpd), down from 13.861 million bpd in the previous week. However, production remained 525,000 bpd higher than the corresponding period last year.
The slowdown in drilling activity was also reflected in completion operations. Primary Vision’s Frac Spread Count, which tracks the number of hydraulic fracturing crews completing wells, fell by four to 196 crews after declining by five in the previous week.
In the Permian Basin, the country’s largest shale-producing region, the rig count slipped by one to 258, leaving activity two rigs below year-ago levels.
The Eagle Ford shale play remained unchanged at 47 rigs, although the basin has eight more rigs than at the same time last year.
Despite the modest decline in drilling activity, oil prices remained elevated following recent geopolitical tensions in the Middle East.
