“The number of rigs exploring for oil and natural gas in the USA increased by 15 this week to 462”.
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The data overall suggests that the underlying recovery in oil prices has helped stabilize the overall rig count.
Houston oilfield services company Baker Hughes Inc. said Friday that 371 rigs sought oil and 88 explored for natural gas this week.
State wise, Texas gained 15 rigs, California added two and New Mexico’s count moved up by one.
The decline is being attributed to a ramp-up in drilling fields that are profitable with oil below US$50 per barrel, adding further to the supply glut. The gas rig count rose by one to 89, taking the total up seven to 447. Analysts and producers said $50 was a key level that would prompt a return to the well pad after the biggest price rout in a generation prompted a slump in the oil rig count since it peaked at 1,609 in October 2014.
The Houston company reported that US oil rigs were up 14 to 371, marking the seventh active rig increase reported by the oilfield services giant in the past eight weeks.
After sliding every month this year from 9.2 MMbbl/d in January, the EIA expects crude output to bottom at 8.1 MMbbl/d in September before edging up to 8.2 MMbbl/d in October and 8.3 MMbbl/d in November and December. It’s “quite possible that we continue to see a few more weeks of follow-through, but if oil prices stay in the low $40s, the rig count’s upward momentum will likely be halted”.
USA crude production edged higher by 0.1% over the week to 8.494mn bpd from 8.485mn previously which was the second successive weekly gain in output, although production is still close to the lowest levels since May 2014.
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And, Schlumberger on Friday said it believed “the North America market has turned”.
