The number of active oil and gas rigs in the United States rose again this week by 11—making it 21 weeks of consecutive gains—the longest growth streak since at least 1987, which is the earliest date that Baker Hughes Excel data is available.
As if the 11 rigs added to the U.S. repertoire weren’t enough, Canada added 33 rigs this week as well.
The number of oil rigs in operation increased by 8, while gas rigs increased by 3. Combined, the total oil and gas rig count in the U.S. now stands at 927 rigs, which is 513 rigs over a year ago today, when oil prices were significantly higher than they were today.
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It would appear that there is no end in sight to the steady stream of oil rigs being put into play in the U.S. shale patch, and according to Rystad Energy, the significant number of drilled but uncompleted wells (DUCs) should serve as sufficient insulation to $40 or even $30 barrel prices, as those DUCs would still be commercially viable for completion at those prices. Related: Is The Electric Car Boom Overhyped?
Cana Woodford and the Permian both added 4 rigs each this week, with Marcellus and Utica each adding 2. Barnett, Granite Wash, Haynesville, and Mississippian each added a single rig. The losers this week were Ardmore Woodford, DJ-Niobrara, and Eagle Ford. The Permian now has 142 more rigs in play than this time last year, and Eagle Ford, the second most prolific basin, has 54 more.
At 12:56pm EST on Friday, WTI was trading up 0.9 percent for the day at $46.05, with Brent Crude up 1.04 percent at $48.36. At 9 minutes after the hour, WTI started to slip and was trading at $45.97.
By Julianne Geiger for Oilprice.com
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