U.S. rig count adds four to 408
Breaking a ten-month long decline, the U.S. rig count rose by four in the week ended June 3, 2016, according to information from Baker Hughes (ticker: BHI). The total U.S. rig count reached 408 today, sill down 53% from this time last year.
The first increase in the rig count in 2016 was led by nine added rigs drilling for oil this week. The total number of active rigs targeting oil is now 325. The Permian reported the majority of the added rigs, on a basin-by-basin basis, with five additional rigs.
The number of rigs drilling for natural gas fell this week after adding two last week. Rigs drilling for gas totaled just 82 this week, down 63% from this time last year.
The five added rigs to the Permian basin furthered it as the most active basin in the U.S. Currently, there are 142 active rigs in the play, 113 more than the Eagle Ford, the second-most active play.
Near the bottom
During a conference call this week, Genscape analysts said they believe we are near the bottom of the rig count decline. The group said they see the bottom of the oil rig count at 312, indicating that there may be another leg lower before an ultimate recovery. Genscape expects the rig count to climb above 500 by the end of the year.
