• 20 mins Is A Russia-Cuba Energy Deal In The Works?
  • 3 days Iraq Begins To Rebuild Largest Refinery
  • 3 days Canadian Producers Struggle To Find Transport Oil Cargo
  • 3 days Venezuela’s PDVSA Makes $539M Interest Payments On Bonds
  • 3 days China's CNPC Considers Taking Over South Pars Gas Field
  • 3 days BP To Invest $200 Million In Solar
  • 3 days Tesla Opens New Showroom In NYC
  • 3 days Petrobras CEO Hints At New Partner In Oil-Rich Campos Basin
  • 3 days Venezuela Sells Oil Refinery Stake To Cuba
  • 3 days Tesla Is “Headed For A Brick Wall”
  • 4 days Norwegian Pension Fund Set to Divest From Oil Sands and Coal Ventures
  • 4 days IEA: “2018 Might Not Be Quite So Happy For OPEC Producers”
  • 4 days Goldman Bullish On Oil Markets
  • 4 days OPEC Member Nigeria To Issue Africa’s First Sovereign Green Bond
  • 4 days Nigeria To Spend $1B Of Oil Money Fighting Boko Haram
  • 4 days Syria Aims To Begin Offshore Gas Exploration In 2019
  • 4 days Australian Watchdog Blocks BP Fuel Station Acquisition
  • 4 days Colombia Boosts Oil & Gas Investment
  • 5 days Environmentalists Rev Up Anti-Keystone XL Angst Amongst Landowners
  • 5 days Venezuelan Default Swap Bonds At 19.25 Cents On The Dollar
  • 5 days Aramco On The Hunt For IPO Global Coordinators
  • 5 days ADNOC Distribution Jumps 16% At Market Debut In UAE
  • 5 days India Feels the Pinch As Oil Prices Rise
  • 5 days Aramco Announces $40 Billion Investment Program
  • 5 days Top Insurer Axa To Exit Oil Sands
  • 6 days API Reports Huge Crude Draw
  • 6 days Venezuela “Can’t Even Write A Check For $21.5M Dollars.”
  • 6 days EIA Lowers 2018 Oil Demand Growth Estimates By 40,000 Bpd
  • 6 days Trump Set To Open Atlantic Coast To Oil, Gas Drilling
  • 6 days Norway’s Oil And Gas Investment To Drop For Fourth Consecutive Year
  • 6 days Saudis Plan To Hike Gasoline Prices By 80% In January
  • 6 days Exxon To Start Reporting On Climate Change Effect
  • 7 days US Geological Survey To Reevaluate Bakken Oil Reserves
  • 7 days Brazil Cuts Local Content Requirements to Attract Oil Investors
  • 7 days Forties Pipeline Could Remain Shuttered For Weeks
  • 7 days Desjardins Ends Energy Loan Moratorium
  • 7 days ADNOC Distribution IPO Valuation Could Be Lesson For Aramco
  • 7 days Russia May Turn To Cryptocurrencies For Oil Trade
  • 7 days Iraq-Iran Oil Swap Deal To Run For 1 Year
  • 10 days Venezuelan Crude Exports To U.S. Fall To 15-year Lows
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