U.S. oil rigs in service fell nine this week as U.S. oil production rose again to the all time high of 11 million bpd. Canadian oil wells rose 12 to offset. Bottlenecks remain in the Midland Texas area.
U.S. oil rigs in service fell nine this week as U.S. oil production rose again to the all time high of 11 million bpd. Canadian oil wells rose 12 to offset. Bottlenecks remain in the Midland Texas area.
Total North America rig count rose 4 to 1273 up 116 year on year.
Canada add 12 oil rigs to 153 in the past week General Electric Co’s Baker Hughes reported.
General Electric Co’s Baker Hughes reported:
United States
- Oil rigs fall 9 tot 860
- Natural gas fall 4 to 182
Canada
- Oil rigs rose 12 to 153
- Natural gas rigs rose 5 to 76
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
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.
Since a six-year low of 316 in May 2016 drillers have added over 150% with the rise in oil prices and record oil and gas production. The 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
In early May analysts at Simmons & Co, the energy unit at U.S. investment bank Piper Jaffray, raised their forecast for the average total oil and natural gas rig count to 1,020 in 2018 and 1,135 in 2019, up from an earlier projection of 1,015 in 2018 and 1,130 in 2019. The total number of oil and gas rigs active in the United States has averaged 983, up sharply from the average of 876 rigs in 2017. This pace forecasts the highest rig count since 2014 when it averaged 1,862 rigs.
US field oil production rose again to ATH of 11 milbpd via RonH @Ronh999 Aug 24
Source: Baker Hughes, TradersCommunity
From The TradersCommunity News Desk