Oil drillers and producers have responded as expected to WTI over $65. Oil service firms $HAL and $SLB all reported robust North American activity as did $GE. U.S. Oil drilling rigs rose 12 to 759 in the past week General Electric Co’s Baker Hughes reported.
Oil drillers and producers have responded as expected to WTI over $65. Oil service firms $HAL and $SLB all reported robust North American activity as did $GE. U.S. Oil drilling rigs rose 12 to 759 in the past week General Electric Co’s Baker Hughes reported.
With Oil specs at record long and commericals selling to hedge in makes sense that rigs are being added. North American oil and natural gas pices have caught a bid as drilling rigs face seasonal challenges. U.S. oil rigs rose 12 this week with Canada added back another 12 oil rigs also as WTI crude futures closed out the week over $66, new 3 year highs.
- U.S. oil rigs rose 12 to 759 and natural gas rigs fell 1 to 188 General Electric Co’s Baker Hughes reported.
- Canada oil rigs rose 12 to 220 and natural gas rigs rose 1 to 118
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 24 to 1285 up 228 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 last year added to the drilling positive tone and appears we haven’t looked back after the past few weeks earnings reports for the most part.
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
From The TradersCommunity News Desk