U.S. oil and natural gas rigs fell gain this week confirming the concerns Baker Hughes GE Co. $BHGE and Schlumberger $SLB had about driling activity. The news sent WTI Crude oil prices higher to close above key weekly levels.
U.S. oil and natural gas rigs fell gain this week confirming the concerns Baker Hughes GE Co. $BHGE and Schlumberger $SLB had about driling activity. The news sent WTI Crude oil prices higher to close above key weekly levels. Crude oil prices gained over 9 % in September, the biggest monthly increase since April 2016 on post hurricane and Kurd indpendence risk adjustments and haven’t looked back.
U.S. oil rigs fell 8 and U.S. natural gas rigs fell 3 General Electric Co’s Baker Hughes reported. U.S. oil and gas production continues to rise underscoring the efficiency of the drilling rigs. Baker Hughes said Canada gained 4 oil rigs and took off 3 gas rigs. We saw rigs off per companies plans at their last earnings guidance. On a monthly basis rigs fell 9 in September, after declining 7 in August.
The Total North America rig count fell 10 to 1090 up 367 year on year.
Shale production has been lifted by the smaller niche producer and majors like ExxonMobil. 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.
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.
Source: Baker Hughes, TradersCommunity
From The TradersCommunity News Desk