U.S. rig count is growing, particularly in the Permian, as OPEC appears to be complying

The United States rig count grew by 35 in the week ended January 20, 2017, according to Baker Hughes Industries (ticker: BHI). The total count now sits just below 700 at 694, according to the group. The current count is now 57 rigs higher than where it was at this time last year.

The majority of the gains came from rigs drilling for oil, which increased by 29 over the course of the last week. Those drilling for natural gas increased by six week-over-week. Compared to last year, the oil and gas rig counts are now 41 rigs and 15 rigs higher, respectively.

The Permian Basin continues to be the focus of most of the new activity in the country, with 13 of the added rigs this week drilling in that region. The Cana Woodford reported nine new rigs, the Utica and Williston added three each, The Eagle Ford added two, and the Haynesville and Marcellus added one each. All other basins reported no change in their rig counts over the course of the week.

The Cana Woodford, DJ, Fayetteville, Haynesville, Marcellus, Permian and Utica all reported higher rig counts this week compared to a year ago.

The Canadian rig count was also up this week to 342 total, 27 more than a week ago. Of those added rigs, 23 are targeting oil and five are drilling for natural gas. Added rigs in both the U.S. and Canada have brought the total North American count to 1,036, 149 more than at this time last year.

Baker Hughes rig count for January 20, 2017. Most of the added rigs this week were in the Permian Basin.

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