Oil & Energy

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Over the past few weeks we have seen a steadying of new oil rigs in the US as the oil price falls. Baker Hughes US oil rig count fell just 1 rig 764 from 765. U.S. Natural gas rigs also fell from 187 to 186 this week.

The total North America  rig count rose 13 to 1156 from 1143 up 592 year on year. Canada saw big rises with Oil at 118 up 12 from 106  and Gas at 88 up 3 from 85 for the week

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. 

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. Source: Baker Hughes, TradersCommunity From The TradersCommunity News Desk

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