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Rigs actually fell a week ago but not this week, back to 800 oil rigs.This week's DoE Petroleum Status Report showed the U.S. back pushing all time high oil production and again U.S. Oil and Gas Rig Counts rose as worries of a trade war rings out. 

Shale Basins EIA

Canada removed 52 oil rigs to 196 in the past week General Electric Co’s Baker Hughes reported.

With oil specs still with large 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 and still sit over $61 for WTI crude futures just $4 from 3 year highs held for now.

General Electric Co’s Baker Hughes reported:

United States

  • oil rigs rose 4 to 800
  • natural gas rigs rose 1 to 189

Canada

  • oil rigs fell 52 to 196
  • natural gas rigs fell 2 to 77

Total North America rig count fell 48 to 1257 up 144 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 3 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. Since 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 with increased production outlook from Apache, RSP Permian, Cabot oil and gas, EOG Resources and Carrizo Oil and Gas to name a few.  Marathon Oil also announced on March 2 that it was fully divesting from Libya to concentrate on it's US assets.

BHI Rig Count 3 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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