• 3 minutes Shale Oil Fiasco
  • 7 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 12 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 16 minutes Global Debt Worries. How Will This End?
  • 1 min americavchina.com (otherwise known as OilPrice).
  • 3 hours Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 13 hours Forget The Hype, Aramco Shares May be Valued At Zero Next Year
  • 2 days Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 1 day Natural Gas
  • 6 hours POTUS Trump signs the HK Bill
  • 18 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 6 hours Iraq war and Possible Lies
  • 2 days Everything you think you know about economics is WRONG!
  • 9 hours READ: New Record Conoco Eagleford Vintage 5 wells, their 5th generation test wells . . . Shale going bust . . . LAUGHABLE
  • 2 days 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 1 day Aramco Raises $25.6B in World's Biggest IPO
  • 23 hours My interview on PDVSA Petrocaribe and corruption
  • 1 day Winter Storms Hitting Continental US

Breaking News:

Surprise Crude Build Threatens Oil Rally

Alt Text

OPEC+ Agrees To Deeper Output Cuts

The OPEC meeting ended with…

Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.

More Info

Premium Content

U.S. Shale Ignores OPEC’s Warning: Oil Rig Count Soars By 10

The United States oil and gas rig count jumped by 15 this week, to its highest level since September 25, 2015, according to Baker Hughes’ latest report on domestic drilling activity.

The number of oil and gas rigs currently active in the United States now sits at 824, which is an increase of 374 year over year.

The steady and sizeable jump in rigs signals an indifference by American shale producers towards warnings issued by the Saudi Arabian leadership against increased production. The KSA, which serves as the de facto leader of the Organization of Petroleum Exporting Countries (OPEC), entered into an agreement with its fellow bloc members and 11 NOPEC nations to cut production by 1.8 million barrels. But cheap shale output from the United States is now threatening the effectiveness of the OPEC agreement, diminishing the likelihood of ending the supply glut.

Most of this week’s increases were to the number of active oil rigs, which increased by 10 to 662, compared to 362 a year ago. The number of gas rigs also increased by 5 to 160, up from 155 last week and 88 a year ago.

The Permian Basin saw the most number of rigs added again this week, bringing 4 additional rigs online after adding 7 last week, now at 319 versus only 145 rigs a year ago. Cana Woodford and DJ-Niobrara each lost two rigs, while Eagle Ford, Granite Wash, and Haynesville all added a rig.

A half hour prior to the data release, WTI was trading up $0.08 (.16%) at $50.43 per barrel, with Brent trading up $0.19 (.36%) at $53.32 per barrel. After the impressive increases to the number of rigs now in production, WTI began to fall and had slid 10 cents within 15 minutes.

(Click to enlarge)

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Bud on March 31 2017 said:
    Half the rigs added were in Alaska and Louisiana which are not shale and cannot react weak by weak to prices. Texas seems to be leveling off considering the capital present.
  • Mickey on March 31 2017 said:
    Let's see, opec wanted to bankrupt us shale oil and now they are whining after us had ~100+ bankruptcies in oil and gas sector???
  • Kr55 on March 31 2017 said:
    The real warning OPEC gave was the comment that Shale players will be running each other back out of business by inflating their service costs. It's going to get very ugly soon, especially in the Permian where players have paid ridiculous amounts of money for land thinking cost savings from last year can be used to model their cash flows in 2017 and beyond.
  • NickSJ on March 31 2017 said:
    So you corrected your headline without printing my comment which pointed that out to you or acknowledging your error. Shabby, but not unexpected.
  • Ted on April 03 2017 said:
    screw opec and those middle easter states...im so sick and tired oft he crying about the price of oil... if this country was smart we would use our own oil and to hell with opec

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play