Opec boosts oil income in 2021

As Opec raised output in 2021, the number of active oil rigs in Opec members rose by 11 percent to 489.

As Opec raised output in 2021, the number of active oil rigs in Opec members rose by 11 percent to 489.

Published Jun 29, 2022

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Opec’s oil revenue surged in 2021 as prices and demand recovered from the worst of the Covid pandemic, while the number of its members’ active rigs posted a modest rebound and new completed wells declined, data from the group showed.

The value of petroleum exports by the 13-member Organization of the Petroleum Exporting Countries (Opec) reached $561 billion (R8.9bn) in 2021, up 77 percent from 2020, Opec’s Annual Statistical Bulletin published yesterday showed.

As Opec raised output in 2021, the number of active oil rigs in Opec members rose by 11 percent to 489, a smaller increase than that seen worldwide. Top exporter Saudi Arabia added 6 rigs to 65 in 2021, although the total was below the 2019 level.

Opec and its allies, known as Opec+, have been struggling to boost output in line with targets, reflecting under-investment by some members in drilling and exploration. The shortfall is one of the reasons oil prices have soared in 2022.

The number of completed wells – the process of making a well ready for production, another metric that Opec tracks – in the group’s members declined last year to 1588, a drop of 280 from 2020 and the lowest since at least 2017.

Well completions dropped in all Opec member countries except Libya, Venezuela, Equatorial Guinea, Angola and Iran, according to the report. By contrast, the worldwide number of completed wells increased last year.

Reuters