• 11 hours U.S. Oil Production To Increase in November As Rig Count Falls
  • 13 hours Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 15 hours Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 16 hours EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 18 hours Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 19 hours Aramco Says No Plans To Shelve IPO
  • 3 days Trump Passes Iran Nuclear Deal Back to Congress
  • 3 days Texas Shutters More Coal-Fired Plants
  • 4 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 4 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 4 days Chevron Quits Australian Deepwater Oil Exploration
  • 4 days Europe Braces For End Of Iran Nuclear Deal
  • 4 days Renewable Energy Startup Powering Native American Protest Camp
  • 4 days Husky Energy Set To Restart Pipeline
  • 4 days Russia, Morocco Sign String Of Energy And Military Deals
  • 5 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 5 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 5 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 5 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 5 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 5 days District Judge Rules Dakota Access Can Continue Operating
  • 6 days Surprise Oil Inventory Build Shocks Markets
  • 6 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 6 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 6 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 6 days Oil M&A Deals Set To Rise
  • 6 days South Sudan Tightens Oil Industry Security
  • 6 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 6 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 7 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
  • 7 days Record U.S. Crude Exports Squeeze North Sea Oil
  • 7 days Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan
  • 7 days Supply Crunch To Lead To Oil Price Spike By 2020s, Expert Says
  • 7 days Saudi Arabia Ups November Oil Exports To 7-Million Bpd
  • 7 days Niger Delta State Looks To Break Free From Oil
  • 7 days Brazilian Conglomerate To Expand Into Renewables
  • 7 days Kurdish Independence Could Spark Civil War
  • 7 days Chevron, Total Waiting In The Wings As Shell Mulls Majnoon Exit
  • 8 days The Capital Of Coal Is Looking For Other Options
Alt Text

The Trillion Dollar Market That Stopped Chasing Profits

The revolution in the automobile…

Alt Text

Oil Prices Rise Amid Falling U.S. Rig Count

Oil prices inched higher on…

Alt Text

Oil Prices Spike On Middle East Tensions

Oil prices jumped upwards on…

Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for US-based Divergente LLC consulting firm, and a member of the Creative Professionals Networking Group.

More Info

16th Straight Build In Oil Rig Count Increases Pressure On Oil Prices

Oil rigs

The number of active oil and gas rigs in the United States rose by 7 on Friday, according to oilfield services provider Baker Hughes, delivering a severe blow to oil prices, which were already down to new lows for 2017.

The total oil and gas rig count in the US now stands at 877 rigs, or 462 above the count a year ago.

Oil rigs increased by 6, while gas rigs bumped up 2; a single miscellaneous rig was taken out of production.

At 12:39pm EST, WTI was trading up 1.25 percent for the day at $46.09, while Brent Crude traded up 1.07 percent at $48.90—about a $3.00 per barrel loss from last Friday. Those prices reflect almost a total reversion to the price points prior to the OPEC agreement announcement on November 30, 2016.

This week marks the sixteenth straight build for oil rigs (+181 or +34.7% since January 13). Gas rigs climbed 11 of the last sixteen weeks, for a total gain of 37 (+27.2%).

Rig Factoid: A decade ago this week, the four states that had the most number of oil and gas rigs—Texas (819), Louisiana (184), Oklahoma (182), and Colorado (109)—accounted for 74% of the total rigs in production (1704).A total of 26 states had active oil and gas rigs at that time.

Some in the industry see this as a complete failure on OPEC’s part, who set out a monumental effort to stabilize the market through “rebalancing” the oil market in hopes of lifting prices. While OPEC—and its non-OPEC counterpart—has indeed shaved about 1.8 million barrels per day off their October 2016 production levels, it has done little, if anything, to oil inventories globally, and as of today, has done little, if anything, to boost prices. Related: All Eyes On Saudi Arabia As OPEC Begins To Unravel

Rig Factoid: Today, the top four states—Texas (442), Oklahoma (120), Louisiana (62), and New Mexico (56)—account for 78% of the total rigs in production (877). The total number of states with active oil and gas rigs now stands at 20, with 7 states dropping to zero rigs, including Indiana, Kansas, Montana, Nevada, South Dakota, Tennessee, and Virginia. Florida and Illinois both rose from zero to 1 and 2 rigs, respectively.

Meanwhile, U.S. shale is carrying on, after enjoying what was a temporary lift in oil prices during the last 4 months thanks to OPEC’s production cuts.

Shortly after data release, WTI was trading at $46.29 +1.69% with Brent trading at $49.15, up 1.59%.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • david on May 05 2017 said:
    7 rigs....

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News