• 3 minutes Natural gas is crushing wind and solar power
  • 6 minutes OPEC and Russia could discuss emergency cuts
  • 8 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 11 minutes Question: Why are oil futures so low through 2020?
  • 13 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 2 hours So the west is winning, is it? Only if you’re a delusional Trump toady, Mr Pompeo, by Simon Tisdall
  • 11 mins Peak Shale Will Send Oil Prices Sky High
  • 42 mins "Criticism of migration will become a criminal offense.  And media outlets that give room to criticism of migration, can be shut down." - EU Official to the Media.
  • 4 hours Fight with American ignorance, Part 1: US is a Republic, it is not a Democracy
  • 4 hours Charts of COVID-19 Fatality Rate by Age and Sex
  • 5 hours CDC covid19 coverup?
  • 17 mins Oil and gas producers fire back at Democratic presidential candidates.
  • 19 hours “The era of cheap & abundant energy is long gone. Money supply & debt have grown faster than real economy. Debt saturation is now a real risk, requiring a global scale reset.”"We are now in new era of expensive unconventional energy
  • 6 hours Democrats Plan "B" Bloomberg Implodes. Plan "C" = John Kerry ?
  • 20 hours Who decides the Oil costs?
  • 23 hours Blowout videos
Alt Text

Oil Trading Giant Sees Oil Price Recovery Later This Year

Commodity trading major Vitol said…

Alt Text

The Complete Guide To FID’s

Large oil and gas projects…

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