The U.S. rig count hits 665, one rig higher than at this time last year
The recovery in oil prices has spurred operators in the United States to add more rigs to the active fleet. This has pushed the total number of rigs higher in the first week of 2017 than the first week of last year, as prices continued to fall. There are currently 665 total rigs drilling in the United States, according to Baker Hughes Industries (ticker: BHI), which is symbolic in that the rig count is one more than at this time last year.
Rigs drilling for both crude oil and natural gas increased week-over-week, according to BHI. There are currently 529 rigs drilling for oil and 135 drilling for gas, four and three more rigs than in the previous week, respectively. Compared to year-ago levels, there are currently 13 more rigs targeting oil, while the number of rigs searching for gas has decreased by 13 in the same time period.
An increasing number of basins are beginning to see new activity as oil prices remain above $50 per barrel. The Cana Woodford, DJ, Fayetteville, Haynesville, Marcellus, Permian and Utica all reported more rig activity this week than they did last year.
The Permian reported three additional rigs this week compared to last, while Haynesville reported two, and the Eagle Ford, Marcellus and Utica each reported one added rig. The Permian, with 267 active rigs, remains the most active basin in terms of drilling by a factor of 5.7x compared to the Eagle Ford, the next most-active basin.
Canada continues to report higher levels of drilling with 48 rigs added to the countries count this week. There are currently 205 rigs drilling in Canada, according to the oilfield service company. At this time in 2016, there were 166 rigs drilling in the country, or 39 fewer than was reported for the week ended January 6, 2017.
Source: Baker Hughes
Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.