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With another oil production all time high and U.S. Oil Rig Count rose 26 in the biggest jump since April 2013 To 791 last week. Oil drillers and producers continue to increase oil rigs by 7 to 798 .  

Shale Basins EIA

Canada took off 3 oil rigs to 218 in the past week General Electric Co’s Baker Hughes reported.

With Oil specs at record long and commericals selling to hedge in makes sense that rigs are being added. North American oil prices caught a bid as drilling rigs faced seasonal challenges. WTI crude futures closed out the week back over $60 after a sharp sell off from 3 year highs held for now.

General Electric Co’s Baker Hughes reported:

United States

  • oil rigs rose 7 to 798
  • natural gas rigs fell 7 to 177

Canada

  • oil rigs fell 3 to 218
  • natural gas rigs fell 4 to 100

Total North America rig count fell 7 to 1293 up 211 year on year.

U.S. oil and gas production continues to rise or sit near all time highs underscoring the efficiency of the drilling rigs. We saw rigs rise per companies plans at their last earnings guidance, with oil prices high based on historical relationship with WTI prices, the move is likely to gain traction in the short term

 BHI Rig Count 2 16 18

Shale production has been lifted by the smaller niche producer and majors like ExxonMobil.  Last year 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 last year 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 2 16 18 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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