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U.S. oil rigs in service fell two this week as U.S. oil production remained at an all time high of 11 million bpd. Canadian oil wells fell 18. Bottlenecks remain in the Midland Texas area.


Shale Basins EIA

Total North America rig count fell 24 to 1252 up 106 year on year

Canada took off 18 oil rigs to 133 in the past week General Electric Co’s Baker Hughes reported.

General Electric Co’s Baker Hughes reported:

United States

  • Oil rigs fell 2 to 860
  • Natural gas rose 2 to 186

Canada

  • Oil rigs fell 18 to 133
  • Natural gas rigs fell 6 to 71

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

 BHI 9 7 18

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.  

BHI 9 7 18. Basins 

Since a six-year low of 316 in May 2016 drillers have added over 150% 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. Baker Hughes North American Rig Summary

In early May analysts at Simmons & Co, the energy unit at U.S. investment bank Piper Jaffray, raised their forecast for the average total oil and natural gas rig count to 1,020 in 2018 and 1,135 in 2019, up from an earlier projection of 1,015 in 2018 and 1,130 in 2019. The total number of oil and gas rigs active in the United States has averaged 983, up sharply from the average of 876 rigs in 2017. This pace forecasts the highest rig count since 2014 when it averaged 1,862 rigs. 

US field oil production unchanged at ATH of 11 milbpd via RonH @Ronh999  Sep 6

 

Source: Baker Hughes, TradersCommunity

From The TradersCommunity News Desk

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