The U.S put 6 oil rigs back in service as U.S.oil production was steady at 2300kbpd. US Natural gas rigs fell another 4. Canadian natural gas rigs fell 5, oil rigs rose 7
The U.S put 6 oil rigs back in service as U.S.oil production was steady at 2300kbpd. US Natural gas rigs fell another 4. Canadian natural gas rigs fell 5, oil rigs rose 7.
Total North America rig count +3 to 1077 down 192 year on year
Canada oil rigs rose 7 to 101 inthe past week General Electric Co’s Baker Hughes reported.
General Electric Co’s Baker Hughes reported:
- Oil rigs +6 to 770 (888 Cycle High)
- Natural gas rigs -4 to 165
- Oil rigs +7 to 101
- Natural gas rigs fell 5 at 41
U.S. oil and gas production continues to rise or sit near all time highs underscoring the efficiency of the drilling rigs. We saw rigs rise per companies plans at their last earnings guidance, with oil prices high based on historical relationship with WTI prices, the move is likely to gain traction in the short term
Shale production has been lifted by the smaller niche producer and majors like ExxonMobil. Last year Exxon CEO Darren Woods said $XOM is diverting about one-third of its drilling budget this year to shale fields that will deliver cash flow in as little as three years. The Texas Permian basin is the epicenter of activity. Since CERAWeek in Houston last year added to the drilling positive tone and appears we haven’t looked back.
OPEC August 2019 MOMR on US Rig Counts
US Rig Count Bottomed at 316 May 2016
Since a six-year low of 316 in May 2016 drillers added over 175% with the rise in oil prices and record oil and gas production. The total oil and natural gas rig count ended 2016 at 658, down 6 percent from the 698 at the finish of 2015. From their we have continued to cycle highs in late 2018. Baker Hughes North American Rig Summary
Plainly stated the shale industry is responsible for 100% of the growth.
There are seven main shale oil producing regions in the US. Two of the biggest are Eagle Ford and the Permian Basin. Both of them are in Texas with the latter stretching over to New Mexico. These two are responsible for two-third of the country’s shale output and 45% of the total US production.
Between March 2015 and December 2016 total US shale production fell more than 800,000 bpd as the industry struggled with the aftermath of the 2014-2016 oil price sell-off. In this period output from the Permian Basin kept going higher relentlessly and rose from 1.89 mbd in March 2015 to 2.12 mbpd 21 months later.
Eagle Ford it is the rate of growth that is very impressive. The production of 54,000 bpd in 2007 jumped almost twenty-fivefold to 1.34 mbpd this year on average. The first signs of contraction from these two regions will serve us with a warning signal that the shale peak might be approaching. Latest data, however, suggests that this danger is far away from being imminent. – PVM
US Field Oil Production 12.30 mbpd off 12.40 ATH via RonH @ronh999 August 14- 2019
Baker Hughes International Rig Count: via OILytics @OilyticsData
Baker Hughes International Rig Count: Feb-19 data shows international rigs up +10 m-o-m and +66 y-o-y. All regions showing yearly growth with the exception of Latin America
Source: Baker Hughes, TradersCommunity, OPEC
From The TradersCommunity News Desk