• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 5 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 4 hours Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 2 hours A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 26 mins Used Thin Film Solar Panels at 15 Cents per Watt
  • 3 hours IS ANOTHER MIDDLE EAST WAR REQUIRED TO BOLSTER THE OIL PRICE
  • 12 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 5 hours China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 12 hours US Shale Economic Impact: GDP gain realized in shale boom’s first 10 years
  • 12 hours Iran Is Winning Big In The Middle East
  • 14 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
  • 9 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 10 hours Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
  • 11 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 12 hours TRUMP'S FORMER 'CHRISTIAN LIAISON' SAYS DEEPWATER HORIZON DISASTER WAS GOD'S PUNISHMENT FOR OBAMA ISRAEL DIVISION
Alt Text

The Billion Dollar Oil Hedge That May Never Happen

Worries about the U.S., China…

Alt Text

Oil Plunges On Trade War Escalation

Oil prices plunged on Friday…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

New Drilling To Start As Oil Prices Firm Up

In a sign that the U.S. shale industry could spring back to life, one of the top Texas shale companies expects to grow both production and its rig count this year.

Pioneer Natural Resources said in an updated 2016 outlook issued in June that it would increase its horizontal rig count from 12 to 17 rigs in the Permian basin in the second half of the year. Pioneer will add the first rig in September, with plans to follow that up with an additional two rigs in each of October and November. Those rigs will begin drilling and see initial production in early 2017.

By adding those five rigs, Pioneer expects to see a production growth of 13 to 17 percent next year. That will come on top of the 12 percent growth the company expects this year. The updated outlook comes after several weeks of gains in the total U.S. rig count. The U.S. added 21 rigs between the end of May and mid-June, although the industry removed 7 rigs last week, according to Baker Hughes.

Pioneer’s plans, along with the rig data, indicate a slow return of shale drillers to the oil patch. There has been a great deal of speculation whether or not oil rising to $50 would trigger new drilling. The industry won’t come rushing back in a wave, but Pioneer’s decision suggests that at least some companies have an appetite for new drilling at today’s prices.

There is also some anecdotal evidence that companies are starting to finish drilled but uncompleted wells in North Dakota, leading to an uptick in hiring for fracking and well completion services. “We are starting to see a definite increase,” Cindy Sanford, a manager at the Williston office of Job Service North Dakota, told the Forum News Service. “It’s not as crazy as it was before, but we’re starting to see some activity.” After thousands of layoffs, companies are hoping to bring back some of their personnel. “We definitely are starting to see a need for some workers,” Sanford said.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment
  • Jesus Rondon on July 04 2016 said:
    definitely to invest again in renting drilling equipment, it is necessary to study the forecast oil prices, in order to assess the rate of return on investment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play