US shale drilling gets revival as oil prices start to climb

New York

THE biggest reboot of US oil and gas rigs in two years will gain traction as higher prices prompt producers to resume investment in the most profitable plays, according to a report by Platts RigData.

Demand for land rigs will rise 29 per cent next year to 579, the S&P Global Platts unit said in a report released at the Benposium East conference in New York on Wednesday. Platts RigData forecasts average West Texas Intermediate crude prices to climb 23 per cent to US$52.18 a barrel in 2017. The Henry Hub natural gas benchmark is seen increasing 26 per cent to US$3.05 per million Btu.