U.S. energy companies ordered more natural gas rigs than ever. The construction work is in its 16th week which is part of a larger plan. Officials intend to devote 12 months project to aid the gas industry to move forward. On the other hand, the number of additions slowed down over last weeks. At the same time, crude oil prices plummeted to $50 a barrel.
U.S. Currently Has the Most Natural Gas Rigs since April 2015
On Friday, Baker Hughes Inc, an energy services company, posted an update according to which during the week to May 5th, there were six new natural gas rigs. Therefore, the United States operates a total of 703 units across the country. This is the largest production effort since April 2015.
By comparison, the same week a year ago agencies were counting 238 active units. However, the pace of finished oil rigs has slowed down over the past four weeks. As a consequence, the pace of the week to March 10 is registered at its lowest point.
Crude Futures Are Fetching at $48 for 2018
U.S. crude futures registered the weakest performance this week at a price tag of $46 per barrel. This situation hindered the eliminated output that happened at the suggestion of the Organization of the Petroleum Exporting Countries from generating any improvement whatsoever. As such, the contract faced the third week of downhill. This is the longest negative period since November.
However, U.S. energy companies continue to boost investments in natural gas rigs. Analysts expect them also to extract more resources from shale fields in upcoming years. This is all because energy prices might go up in future months. Crude futures are fetching at $48 for the year of 2018 while in 2017 they are staying at $47 a barrel.
According to federal data, in the week to April 28, the average output of crude in U.S. was at 9.3 million per day. This quantity marks the highest level since August 2015.
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