US Oil Rigs Steady While Canada Rigs Grow Baker Hughes Shows


[quote=”Assistanc3″ post=224]I always thought it was interesting that people would only post data on U.S. rig counts when Baker Hughes also provided Canadian rig counts. Now I could understand neglecting Canada rig counts if Canada hogged all the gas and oil but where does it go? Canadian oil and gas primarily goes to the USA.

So if Canadian oil goes to the USA and people are only focused on the U.S. rig counts, I think that is silly, specially if one trades the oil and gas markets on speculation from BH data.

Also, what I like seeing added by the TC report is the shale basins image
Not everyone knows where all the oil is and different states have different rules, needs and laws regarding oil and gas production. So its nice to but a name with a location.[/quote]

Well put A3 it is important to know where the oil comes from – something the OPEC boys never grasped 🙂 It is also important to understand what oil contract physical or derivative you are changing and what pertains. The WTI contract has a Cushing, OK hub and PADD 3 (gulf coast) are clearer drivers. Brent is not the U.S. for example and is affected by exchange rates as are the Canadian contracts.

Back on Canada TransCanada reports this Friday and yes the pipelines do affect WTI as you so rightly point out. The basins are so important to grasp if you trade or invest in any of the relevant energy stocks – I am trying to report on as many as I can.

Cheers TC and A3