Industry at a glance
Tensions between Russia and Ukraine, combined with surging demand, caused oil prices to increase approximately 20% this year, with WTI and Brent hitting $90.61/bbl and $96.43/bbl, respectively, in February. With many major producers struggling to boost supply, traders at Vitol Group predicted oil at $100/bbl for a sustained period. Under-investment continues to be an issue. The higher prices caused U.S. drilling activity to surge 4%, with an average 601 rigs working in January. Louisiana gained seven rigs for a total of 55, while Texas increased five rigs, up to 280. New Mexico gained four, for a total of 95. U.S. drillers continued to work down the DUC backlog. In January, there were 4,466 DUCs in the U.S., 38% fewer than the year-ago tally of 7,177. International activity averaged 991 rigs in December, 15 more than in November.
