The rig count continues to fall as prices rise

The U.S. rig count fell for the sixteenth straight week, according to information released by Baker Hughes (ticker: BHI) today. There are now just 443 rigs actively drilling in the U.S., seven less than BHI reported last week.

The number of rigs targeting gas increased by one over the course of the week to 89, but operators continued to lay down those drilling for oil. The oil rig count fell by eight this week to 354.

Most of the lost rigs came from the Permian Basin, which reported three fewer rigs this week than last week. Currently, just 142 rigs are active in the play. A year ago, that number stood at 264, even as prices began to plummet. The Barnett, Haynesville and Williston also reported fewer rigs this week.

The Cana Woodford and Utica each reported two more rigs this week than last, while the Eagle Ford reported one additional rig.

The Canadian rig count fell for the ninth straight week as well. The total rig count in Canada stood at 41, down eight from last week.

The continued decline in rig counts is taking place against the backdrop of recovering oil prices. U.S. crude oil benchmark rose over 6% to $39.60 per barrel, while international benchmark Brent made gains of nearly 6%, resting at $41.76 at 3:15 p.m. EST. Oil prices have held above $35  per barrel since early March, but concerns of oversupply persist, and operators do not appear to be interested in adding more oil to the glut.


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