U.S. oil producers expand well completions as oil prices soar

• Number of pressure pumping units rose 5% in December compared to the previous month

• Oil prices in U.S. rose to more than $81 per barrel, from $53 a year ago

U.S. oil and gas producers are expanding new well completions in the Permian Basin of west Texas and New Mexico as oil prices cross $80 per barrel, according to a research.

In the Permian, the number of pressure pumping units rose 5% in December compared to the previous month, said analysts.

Majority of this year’s oil output by U.S. of 900,000 barrels per day will account from the Permian. Last year, output fell about 11.18 million bpd due to reduced demand in the pandemic and some storms.

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Organization of the Petroleum and Exporting Countries and allies have been struggling in meeting oil targets in recent months due to which oil prices in U.S. rose to more than $81 per barrel, from $53 a year ago.

Pressure pumping units are used to release trapped oil and gas.

Last week, NexTier Oilfield Solutions, the third largest pressure pumper, forecast higher than projected fourth quarter sales and earnings indicating increased demand.

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This week, Bank of America analysts forecast global spending on drilling and completion to rise 22%, which is the strongest year-over-year gain since 2006.

Picture Credits: Reuters