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Not all bad news in North America is more of a longer-term trend, however.
Last week’s news that Chevron was buying In the short term, meanwhile, the US saw
Noble Energy for $5bn was followed by other its first increase in the active oil rig count since
positive developments in North America. First, mid-March. But the increase was a marginal one,
another acquisition – solely involving acreage with Baker Hughes’ data showing the number of
and smaller than Chevron’s deal, but still sizea- oil-focused rigs had risen by one in the week up
ble nonetheless – was announced. Then the latest to July 24 and, given a drop of three in the gas rig
Baker Hughes oil rig count edged up for the first count over the same week, there was still a slight
time since March. net decline.
ConocoPhillips said on July 22 that it was At the basin level, both the Permian Basin,
buying additional acreage in Western Canada’s Eagle Ford and Granite Wash regions saw slight
Montney shale play from Kelt Exploration for increases in the oil rig count. And while these
around $375mn, plus the assumption of roughly were cancelled out by declines in the number of
$30mn worth of financing obligations for asso- gas rigs, they are being held up as a reason to be
ciated infrastructure. The acquisition, in the liq- cautiously optimistic about the start of a gradual
uids-rich Inga-Fireweed asset directly adjacent recovery.
to ConocoPhillips’ existing Montney position, At the same time, though, second-quarter
comprises roughly 140,000 net acres (567 square results announcements are looming, and prom-
km). The deal will bring ConocoPhillips’ total ise to be largely negative. Indeed, oilfield ser-
Montney footprint to 295,000 net acres (1,194 vices leader Schlumberger reported a net loss
square km). of $3.4bn on July 24, and eyes are now turning
The Montney is primarily known as a gas to the upstream players as they prepare for their
play, and though this acquisition consists of own second-quarter earnings releases.
both gas and liquids, it may indicate gas coming If you’d like to read more about the key events shaping
back into favour with producers – as Chevron’s the North American oil and gas sector then please click
forthcoming merger with Noble also does. This here for NewsBase’s NorthAmOil Monitor. ™

The US has seen a first
increase in its active rig
count since mid-March.

Week 30 29•July•2020 www. NEWSBASE .com P15