U.S. rig count down 40 from the start of the year

The number of rigs drilling in the United States plummeted along with crude oil prices from the end of 2014 through the first half of this year. Lower prices made many hydrocarbon resources in the ground uneconomical to produce, reducing the demand for rigs. As prices have recovered, the rig count has returned to 658, just 6% lower than where it started in 2016.

U.S. rig count for full-year 2016

Baker Hughes Rig Count Jan. 1 – Dec. 30, 2016

The U.S. rig count was up five rigs from last week in Baker Hughes’ (ticker: BHI) most recent report. The group said that two rigs were added to those drilling for oil, while rigs targeting gas increased by three for totals of 525 and 132, respectively.

The largest increases in activity this week came from the Permian and the Eagle Ford, both of which reported two additional rigs, bringing their totals to 264 and 46, respectively. The Permian and the Eagle Ford remain the first- and second-most active basins in the country.

The Cana Woodford, Granite Wash and Williston each reported one additional rig this week. No basins reported lower rig counts this week compared to last week.

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