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U.S. oil rigs rose this week after a series of falls in a week where WTI crude futures traded to almost $58. We will have to see if this a trend back to increased driling activity and how long it takes drillers to respond to the higher prices. U.S. oil rigs rose 9 to 738 and U.S. natural gas rigs remained unchanged at 169 General Electric Co’s Baker Hughes reported.

Shale Basins EIA

U.S. oil and gas production continues to rise underscoring the efficiency of the drilling rigs. General Electric Co’s Baker Hughes reported Canada gained 8 oil rigs and 4 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 rose 20 to 1110 up 366 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.

BHI Rig Count 11 10 17BHI Rig Count 11 10 17 BAsins

 

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.

Baker Hughes North American Rig Summary

Source: Baker Hughes, TradersCommunity

From The TradersCommunity News Desk

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