With oil production hitting all time highs the U.S. Oil Rig Count rose 26 in the biggest jump since April 2013 To 791. Oil drillers and producers continue to increase oil rigs with WTI over $65. Canada took off 13 rigs to 221 in the past week
With oil production hitting all time highs the U.S. Oil Rig Count rose 26 in the biggest jump since April 2013 To 791. Oil drillers and producers continue to increase oil rigs with WTI over $65.
Canada took off 13 rigs to 221 in the past week General Electric Co’s Baker Hughes reported.
With Oil specs at 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. WTI crude futures closed out the week under $60 after a sharp sell off from 3 year highs.
General Electric Co’s Baker Hughes reported:
- oil rigs rose 26 to 791
- natural gas rigs fell 3 to 184
- oil rigs fell 13 to 221
- natural gas rigs fell 4 to 104
Total North America rig count rose 12 to 1300 up 207 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
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.
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