News Oil & Gas

Oil and gas industry recovering from COVID-19

Since the depths of the global pandemic two years ago, the oil and natural gas industry in the United States has witnessed a dramatic recovery.

The Baker Hughes drilling rig count has tripled from a low of 231 in August 2020 to 758 this week, crude oil production is up 10%, and liquefied natural gas (LNG) exports set a record.

Service companies Schlumberger, Baker Hughes and Halliburton report high demand from exploration and production companies, but equipment is in short supply.

A recent survey of oil and natural gas firms by the Federal Reserve Bank of Dallas found 94% believe supply-chain issues are having a negative impact on their firm, and 66% expect that it will take more than a year to resolve these issues.

The Energy Information Administration reported an analysis of published financial reports of 53 publicly traded exploration-and-production companies and found the companies reported both higher revenues and higher material and labor costs compared with the first quarter of 2021.

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