Count of U.S. Working Oil Rigs Falls 2 Rigs to 316
The total U.S. rig count held steady this week for the first time in 2016 (last week of unchanged rig count was December 18, 2015), bucking the trend of continued decline. Oil rigs continued to decline, down -2 rigs this week, and 220 rigs year to date. Natural gas added 2 rigs this rigs to move up to 87 rigs, down 75 rigs year to date.
Year to date, the largest decline is in vertical wells, declining from 89 at year end 2015 to 46 currently, a -48% decline. Horizontal rigs have fallen to 314 rigs from 549, a -43% decline.
Canadian rig count fell one rig to 43 rigs this week. Canadian gas rigs now double the active oil rigs, gas rigs comprise 28 of the total, with oil rigs coming in at 14. The majority of Canadian drilling takes place Alberta with 28 rigs in that province.
Permian Still King
The Permian remains the most active basin in the U.S., with 137 active rigs, more than one hundred more than the next most active basin, the Eagle Ford, which reported 29 rigs for the week ended May 27, 2016, with the Cana Woodford trailing close behind at 28 rigs and the Marcellus at 26 rigs.
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