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US oil rigs drew fell again this week. Bakers Hughes said the U.S. oil rig count  fell 4 after falling 5 last week to 759. Canada lost 6 rigs.The lower rigs were mainly due to mainenance takedowns.

Gas rigs fell 2 rigs to 180 after they gained 1 rig last week. Over the past few weeks we have seen a steadying of new oil rigs in the US. Canada gained 9 gas rigs

The total North America rig count fell -3 after falling 9 last week, the rig count is up 522 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.

 BHI Rig Count 8 25

BHI Rig Count Basins 8 25

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

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