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U.S. oil rigs fell this week after a series of rises in a week where WTI crude futures traded a tight range and natural gas futures continued to slide. Drilling activity lags pricing, how long will it take drillers to respond to the changing prices.  Shale Basins EIA

 

  • U.S. oil rigs fell 4 to 747 and U.S. natural gas rigs rose 3 to 183 General Electric Co’s Baker Hughes reported.

U.S. oil and gas production continues to rise underscoring the efficiency of the drilling rigs, hitting record highs this past week. We saw rigs off per companies plans at their last earnings guidance.

  • General Electric Co’s Baker Hughes reported Canada gained 22 oil rigs and took off 3 gas rigs. 

The Total North America rig count rose 18 to 1116 up 297 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 12 15 17

BHI Rig Count 12 15 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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