Coronavirus company news summary – US oil and gas rig count rises – China’s LNG imports likely to rise

28 September 2020 (Last Updated September 28th, 2020 09:33)

28 September

The US oil and gas rig count increased for a second week in a row as crude prices recover from historic lows following the Covid-19 outbreak. According to Baker Hughes data, the number of oil rigs in the country increased by four to 183 in the week to 25 September. The number of gas rigs rose two to 75. The total count dropped to a record low of 244 rigs in the middle of last month.

The Government of Canada has committed C$320m ($238.6m) to support the struggling offshore oil industry. The investment will support jobs as well as help in funding maintenance and upgrade works as well as environmental services, Reuters reported quoting Canadian Natural Resources Minister Seamus O'Regan. This comes after the weak oil prices forced crude producers to trim expenditures and output.

According to a Reuters report, China’s liquefied natural gas (LNG) imports is expected to grow this year despite the impact of Covid-19. This year, the imports will amount to 65-67 million tonnes, a jump of around 10% over 2019’s figures. The increase is primarily attributed to growing industrial use and residential demand. However, globally, the LNG demand will fall by around 4%.