This week's Baker Hughes report shows an 11-rig increase in the United States oil count, marking 17 straight weeks of no-decline in the active rig figure.
The streak suggests a strong recovery for the U.S. drilling sector, which was hit hard when oil prices dropped for the first time two years ago due to a global supply glut.
The last time the Houston-based oilfield services company reported an oil-rig count this high was in its February 5th report, meaning the figure has reached an eight-month record.
Still, the oil rig count sits 151 rigs below the 594-rig figure reported during the same period last year.
(Click to enlarge)
Image courtesy: Zerohedge.com
"Apparently $45/50 oil is high enough for shale producers to come storming back in," Zero Hedge said.
The gas count saw a three-rig increase to 108 rigs, but is still 85 rigs lower than the count last year.
Texas' rigs increased in number by 10 sites, after losing 3 in last week's report. Wyoming gained three, while Alaska and Utah saw a one-rig jump.
The Permian and Eagle Ford basins saw a combined increase of 13-sites, after losing six rigs last week.
Mississippian and Haynesville gained one rig each, and the DJ-Niobrara site lost one, becoming the only basin to lose a rig this week.
West Texas Intermediate traded flat at $50.63 after the count was released, and Brent traded up 0.41 percent at $51.59 at the time of the report's writing.
Zainab Calcuttawala for Oilprice.com
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Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on… More
Comments
the Zero Hedge chart purports to show a 3 month lag between the oil price and the change in the rig count
so which is it for new rigs, a three month lag, or 'storming back in' as soon as the price rises?