Crude prices remain at 3 year highs and U.S. oil production keeps rising with oil rigs gaining another 7 rigs this week to 815 oil rigs. This week’s DoE Petroleum Status Report showed all time high oil output as worries of a trade war and Syris rings out.
Crude prices remain at 3 year highs and U.S. oil production keeps rising with oil rigs gaining another 7 rigs this week to 815 oil rigs. This week’s DoE Petroleum Status Report showed all time high oil output as worries of a trade war ring out and Syria overhang.
Canada removed 7 oil rigs to 41 in the past week General Electric Co’s Baker Hughes reported.
With oil specs still with large 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 and still sit over $67 for WTI crude futures at new 3 year highs held for now.
General Electric Co’s Baker Hughes reported:
United States
- oil rigs rose 7 to 815
- natural gas rigs fell 2 to 192
Canada
- oil rigs fell 7 to 41
- natural gas rigs fell 2 to 61
Total North America rig count fell 4 to 1110 up 145 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. Since 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 with increased production outlook from Apache, RSP Permian, Cabot oil and gas, EOG Resources and Carrizo Oil and Gas to name a few. Marathon Oil also announced on March 2 that it was fully divesting from Libya to concentrate on it’s US assets.
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