The U.S. rig count has hit an all time high for the year 2021 and it’s expected to do a lot more, too.
So much so, companies are expected to benefit generously from how the market performs.
As of August 13, 2021, the U.S. rig count was at 500.
This is the first time the rig count has been at or over 500 since April 2020, which was during the early part of the COVID-19 pandemic.
During that time, the rig count continued to fall at least 14 more times before holding steady in August 2020.
The number 500 is significant because it’s a sign of things are moving in the right direction.
In July 2021, it was widely reported that U.S. crude oil output rebounded in the first half of the year. It reached 11.45 million barrels a day in June.
Experts expect oil output to continue rising through the rest of 2021, all of 2022 and through most of 2023.
The Permian Basin will have a major role in oil production, too.
According to the American Oil and Gas Reporter, nearly all oil production growth through the next couple of years will be driven by what happens here in the Permian Basin.
Rystad Energy’s production outlook shows that by September 2021, we will see production of between 90 and 95 million barrels per day. By September 2023, Rystad Energy predicts over 95 million barrels to be produced each day.
Rystad Energy also projects record free cashflows for 2021 for many oil companies – going as high as $348 billion.
The turnaround in the nation’s oil sector and the positive returns are one of the main reasons for this, according to Rystad Energy.