“The increase in the rig count as prices near the $50/bbl range is clearly indicative of the elasticity of USA production and speaks to the tremendous efficiency gains reaped by the US producer community over recent years”, said Michael Tran, director of energy strategy at RBC Capital Markets in NY.
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Among major oil- and gas-producing states, Texas and Alaska each gained three rigs. Prior to this week, energy companies added only one rig so far this year, during the week of March 18.
Drillers added nine oil rigs in the week to June 3, Baker Hughes said.
The overall rig count, which includes a net decline of 5 natural gas rigs to 82, grew by 4 rigs to 408.
That’s the biggest jump in awhile after oil rigs hit the lowest since Oct 2009 last week.
The data could provide some clues about whether some producers got back in the game as crude oil prices approached $50 per barrel, said Accendo Markets’ Mike van Dulken in a note.
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The oil rig tally fell by 2, while the gas rig count rose by 2. Over the past year, the number of oil rigs is down by 317.
