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With U.S. production at record highs U.S. oil rigs held steady this week with WTI crude futures trading higher in a tight range. Natural gas rigs added one more as gas futures continued to slide. Driling activity lags pricing, how long it take drillers to respond to the changing prices?Shale Basins EIA

  • U.S. oil rigs remained steady at 747 and U.S. natural gas rigs rose 1 to 184 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 again this past week. We saw rigs off per companies plans at their last earnings guidance, with oil prices high will they add more soon?.

  • General Electric Co’s Baker Hughes reported Canada took off 14 oil rigs and also took off 14 gas rigs. 

The Total North America rig count fell 27 to 1168 up 264 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 22 17

BHI Rig Count 12 22 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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