Natural gas rigs rose while US oil rigs fell again this week after the Hurricane Harvey cleanup continues. With U.S. oil and gas production already back to pre Harvey levels. Bakers Hughes U.S. oil rig count fell 5 to 744. Canada added 10 oil rigs.
Natural gas rigs rose while US oil rigs fell again this week after the Hurricane Harvey cleanup continues. With U.S. oil and gas production already back to pre Harvey levels. Bakers Hughes U.S. oil rig count fell 5 to 744. Canada added 10 oil rigs. The lower rigs appear to mainly due to maintenance and hurricane takedowns with efficient wells coming back on. We are seeing some rigs off per companies plans at their last earnings guidance. U.S. gas rigs rose 4 rig to 190. Over the past few weeks we have seen a slow decline of oil rigs in the US, however this has not affected production. Canada took off 2 gas rigs
The total North America rig count rose 7 to 1155 up 506 year on year.
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 and appears we haven’t looked back after the past few weeks earnings reports for the most part.
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 Des