Oil Drillers Continue to Add Rigs, 6 in US, 14 in Canada

Oil drillers and producers continue to increase oil rigs with WTI over $65. U.S. Oil drilling rigs rose 6 to 765 and Canada added 14 rigs to 234 in the past week General Electric Co’s Baker Hughes reported.

Oil drillers and producers continue to increase oil rigs with WTI over $65.  U.S. Oil drilling rigs rose 6 to 765 and Canada added 14 rigs to 234 in the past week General Electric Co’s Baker Hughes reported.

Shale Basins EIA

With Oil specs at record long and commericals selling to hedge in makes sense that rigs are being added. North American oil prices have caught a bid as drilling rigs face seasonal challenges. U.S. oil rigs rose 6 this week with Canada added back another 14 oil rigs also as WTI crude futures closed out the week over $65 again,near new 3 year highs.

  • U.S. oil rigs rose 6 to 765 and natural gas rigs fell 7 to 181 General Electric Co’s Baker Hughes reported.
  • Canada oil rigs rose 14 to 234 and natural gas rigs fell 10 to 108

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 off per companies plans at their last earnings guidance, with oil prices high will they add more soon?

The Total North America rig count rose 3 to 1288 up 216 year on year.

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 2 18

  BHI Rig Count 2 2 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

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