7 Straight Weeks – Rigs Rise Again
The number of rigs drilling for crude oil increased by seven week-over-week, but the total rig count was held back a small decline in the number of rigs targeting natural gas. Rigs drilling for gas fell by five from last week to 146, up 49 from this time last year.
Looking at variance by basin, the Eagle Ford saw the largest increase with five additional rigs this week bringing the total number in the play to 69 rigs. The Williston saw the next largest increase with three rigs, while the Permian added two rigs, and the Arkoma Woodford and Granite Wash added one rig each. The Permian remains the most active basin with 308 rigs drilling in the play.
The Barnett, Cana Woodford, DJ-Niobrara, Haynesville, Marcellus, and Utica all reported one fewer rig this week compared to last.
Data from the Energy Information Administration on Wednesday showed that inventories rose for an eighth straight week, by 1.5 million barrels. At 502 million barrels, US oil inventories are at the higher end of the average range for this time of year, the EIA said.
That is straining how high oil prices can rise, even as the Organization of Petroleum Exporting Countries stresses its commitment to cut output as agreed in November. A Bloomberg survey found that Saudi Arabia pumped below its target of 10.06 million barrels a day for a second straight month in February.
The price of oil took a hit this week, but as the trading week ended, it appears like a bullish correction despite the largest intra-week decline in two months.
OKLAHOMA SUMMARY – 98 Rigs – Minus 3
The state count dropped to 98 this week after spending four weeks at more than 100. The count is up from the low of 54 in February 2016 and has added 28 over the past year. Oklahoma’s Cana Woodford play — which includes the STACK and SCOOP fields — dropped by three rigs to 50.
Check out our proprietary and interactive Rig Count Dashboard.
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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:email@example.com