U.S. oil rigs fell gain this week General Electric Co’s Baker Hughes reported. Last week rigs rose for the first time in three weeks last week post maintainence and Harvey disruptions. On a monthly basis rigs fell 9 in September, after declining 7 in August.
U.S. oil rigs fell gain this week General Electric Co’s Baker Hughes reported. Last week rigs rose for the first time in three weeks last week post maintainence and Harvey disruptions. On a monthly basis rigs fell 9 in September, after declining 7 in August.. U.S. drillers took off two oil rigs in the week to October 6 General Electric Co’s Baker Hughes reported. Crude oil prices gained over 9 % in September, the biggest monthly increase since April 2016 on post hurricane and Kurd indpendance risk adjustments.
U.S. natural gas rigs fell 2 while. With U.S. oil and gas production already back to pre Harvey levels. Bakers Hughes says Canada took down 1 oil rigs and 2 gas rigs. The lower rigs appeared to be mainly due to maintenance and hurricane takedowns with efficient wells coming back on. We saw some rigs off per companies plans at their last earnings guidance.
The Total North America rig count fell 8 to 1145 up 456 year on year.
US oil rig counts firmed as oil hovered around $50 for the week as it has 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.
Baker Hughes North American Rig Summary
Source: Baker Hughes, TradersCommunity
From The TradersCommunity News Desk