More US and Canada Oil and Gas Rigs Added Baker Hughes Shows

As Oil rises so do rigs, Baker Hughes US oil rig count rose 2 rigs 766 from 764. Over the past few weeks we have seen a steadying of new oil rigs in the US. U.S. added 6 Natural gas rigs to 192 this week. Canada added another 14 rigs.

As Oil rises so do rigs, Baker Hughes US oil rig count rose 2 rigs 766 from 764. Over the past few weeks we have seen a steadying of new oil rigs in the US. U.S. added 6 Natural gas rigs to 192 this week. Canada added another 14 rigs.

The total North America rig count rose 22 to 1178 up 596 year on year. Canada saw big rises again with Oil at 129 up 11 and Gas at 91 up 3 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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