After a major fall in rigs from Aug 2015 through September, the Baker Hughes drilling rig count has risen by 41 since late May.
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The biggest gains were in Texas, where 15 new rigs were brought on line, with the Permian basin specifically seeing eight new rigs put into action.
Other basins with gains this week included the Barnett, D-J/Niobrara, Eagle Ford, Granite Wash and Mississippian.
HOUSTON (AP) – The number of rigs exploring for oil and natural gas in the US increased by 15 this week to 462. Since then the rig count has recovered marginally.
Last week, the tally rose for a third straight week, by six to 357.
The data overall suggests that the underlying recovery in oil prices has helped stabilize the overall rig count.
Oil prices fell on Friday (Jul 22) as data showing an increase in United States petroleum drilling activity added to worries about excess supply.
After almost doubling from a 12-year low in February, a rebound in oil has prompted American producers to expand drilling in recent weeks after idling more than 1,000 oil rigs since the start of last year.
This week trading has seen oil prices slump downward by US$0.83 by mid-day Friday (EST).
That increased drilling should stop the decline in production in a few months, the U.S. Energy Information Administration (EIA) projected in its latest Short-Term Energy Outlook.
“The oil rig count popping 14 rigs this week is likely due to recent oil prices that were closer to $50”, he said in an e-mail.
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And, Schlumberger on Friday said it believed “the North America market has turned”. Analysts at Simmons & Co, energy specialists at US investment bank Piper Jaffray, forecast the total oil and natural rig count would average 487 in 2016, 675 in 2017 and 953 in 2018.
