Canada Continues to Add Oil and Gas Rigs at Sharp Pace

Drilling rigs continued to rise in North America with Canada adding 49 of the 46 rig increase. The US taking off 5 oil rigs as oil prices remain bid amongst extreme cold weather.

Drilling rigs continued to rise in North America with Canada adding 49 of the 46 rig increase. The US took off 5 oil rigs and added 2 gas rigs as oil prices remain bid amongst extreme cold weather. Shale Basins EIA

With Oil specs at record long and commericals selling to hedge in makes sense that rigs are being added or taken down for maintenance. North American oil and natural gas pices have caught a bid as drilling rigs face seasonal challenges. U.S. oil rigs fell 5 this week with Canada added back 23 oil rigs as WTI crude futures still trading to near 3 year highs.

  • U.S. oil rigs fell 5 to 747 and natural gas rigs rose 2 to 189 General Electric Co’s Baker Hughes reported.
  • Canada oil rigs rose 23 to 208 and natural gas rigs rose 26 to 117..

 

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 off per companies plans at their last earnings guidance, with oil prices high will they add more soon?

The Total North America rig count rose 46 to 1261 up 225 year on year.

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. CERAWeek in Houston added to the drilling positive tone and appears we haven’t looked back after the past few weeks earnings reports for the most part.

  BHI Rig Count 1 19 18

BHI Rig Count 1 19 18 Basins

Since a six-year low of 316 in May 2016 drillers have added over 100% despite the recent pullback. Total oil and natural gas rig count ended 2016 at 658, down 6 percent from the 698 at the finish of 2015. Baker Hughes North American Rig Summary

Source: Baker Hughes, TradersCommunity

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