The number of oil drilling rigs in the United States continued to decline last week due to poor infrastructure as well as amid stagnating drilling of new wells in the Permian, the US largest basin.
According to Baker Hughes oilfield service firm, the number of rings has decreased by 2 to 861 in the week to October 5.
The current series of reductions in the number of drilling rigs on a weekly basis is the longest since October last year.
Simmons & Co analysts estimate that the number of installations for oil and gas drilling in the United States will average 1,031 in 2018, 1,092 in 2019, and 1,227 in 2020.
The number of drilling rigs is an early indicator of future US oil output.
As mentioned in the monthly review of the Energy Information Administration (EIA), oil production in the US is expected to increase by 1.31 million barrels per day, reaching 10.66 million barrels per day in 2018.
According to Cowen & Co, the US firm specializing in exploration and production, the companies it tracks indicated an 18 percent increase in planned capital spending this year.
The total investment is estimated at $85.3 billion in 2018 against $72.2 billion in the previous year.
