The U.S. rig count is up 10 to 431
The number of active rigs in the United States increased this week, according to information released by Baker Hughes Industries (ticker: BHI). The total number of rigs reached 431 this week, up ten from last week when the rig count fell slightly. WTI posted gains today despite the increased drilling activity, bringing it to $49.26 per barrel.
The number of rigs targeting oil increased by 11 to 341 this week, while those drilling for gas fell by just one rig. Most of the added rigs were in the Permian Basin, which reported four more rigs this week. The Cana Woodford and DJ Basins each reported two additional rigs as well, while the Barnett added one to its inventory. The Eagle Ford and Haynesville were the only two basins to report fewer rigs this week, down one and two rigs, respectively.
The U.S. saw the largest monthly decline in production since the start of the downturn in April, helping to give prices a boost. As oil prices begin to climb back toward $50 per barrel, more producers will likely begin to complete wells in order to capture higher prices.
The head of the EIA, Adam Sieminski, said the administration believes markets could find balance by the end of this year, while Saudi Arabian Oil Minister Khalid al-Falih said “the oversupply has disappeared… We are out of (the glut),” June 23. As supply and demand tighten, oil prices may gain support even as drilling picks back up.
