US Rig Count Goes Vertical
The US rig count has posted its largest increase since the beginning of the shale oil and gas boom. The Baker Hughes count of active rigs for the week ended Jan. 20 climbed 35 units, the most since the count jumped by 39 during the week ended Aug. 12, 2011. The total count now sits at 694. The current count is now 57 rigs higher than where it was at this time last year.
The majority of the gains came from rigs drilling for oil, which increased by 29 over the course of the last week. Those drilling for natural gas increased by six, week-over-week. Compared to last year, the oil and gas rig counts are now 41 rigs and 15 rigs higher, respectively.
The question we must ask is will the growing rig count be supported by an increase in the price of oil? Into 2017, crude oil will seek to further capitalize on the prospect that the market will finally rebalance as supply is lowered to meet demand. This is based on the assumption that OPEC and non-OPEC producers will deliver the promised and required cuts necessary to balance the market, an assumption that carries a good amount of risk.
Check out our proprietary and interactive Rig Count Dashboard at OklahomaMinerals.com
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Compiled and Published by GIB KNIGHT
Gib Knight is a private oil and gas investor and consultant, providing clients advanced analytics and building innovative visual business intelligence solutions to visualize the results, across a broad spectrum of regulatory filings and production data in Oklahoma and Texas. He is the founder of OklahomaMinerals.com, an online resource designed for mineral owners in Oklahoma. ☞Email:firstname.lastname@example.org