Combined, the count of oil and gas rigs climbed by 10 to 884.
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The overall US rig count hit 2,031 in September 2008, the highest it had been since July 1987, according to Baker Hughes. Last week, the US rig count weakened after it had recorded the highest rig count rise in a year for the week ended July 24. Worrying data about the state of China’s slowing economic growth, which has major implications for oil demand in the world’s top energy consumer, has been a key factor driving the decline in oil prices in recent weeks.
The oilfield services supplier assures the rig counts are “an important business barometer for the drilling industry and its suppliers”. Much of the increase in supply comes from U.S. shale oil basins. Despite posting a loss for the second quarter, Pioneer Natural Resources was among those adding more rigs, saying this week it would increase its capital budget for its operations focused in Texas. In comparison, June’s rig count fell by 28 from May.
Baker Hughes reported a July rig count in the United States at 866, up five from the previous month.
The United States Oil Fund LP (ETF) (NYSEARCA:USO) is down more than 1.4 percent on Friday trading.
Baker Hughes itself is impacted by year-on-year declines in the exploration and production sector.
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Over the past month some of that surplus crude has been turned into refined products. Additional detailed information on the Baker Hughes rig counts is available from our website.
