Oil & Energy

Google Ad

US oil rigs keep motoring along, Bakers Hughes oil rig count rose 3 to 768 much to the chagrin of OPEC. With oil stable around $50 shale projects keep producing as U.S. exports continue to rise. Gas rigs down fell to 181 from 189 last week, much to do with maintenance. Over the past few weeks we have seen a steadying of new oil rigs in the US. 

Canada added another 3 oil rigs and remained unchanged with gas rigs

The total North America rig count fell 2 to 1169 up 562 year on year. 

US oil rig counts are still firm while oil remains soft after sitting around $50 for much of the year. Once Saudi Arabia was downgraded by Fitch OPEC has been in a very difficult spot on extending or deepen cuts. Given the amount of hedging by US Producers over $50-52 this fall hurts the OPEC side considerably in the market share game.

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 appaears 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%. 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

Log in to comment
Discuss this article in the forums (3 replies).