Oil Prices Improve As The U.S. Rig Count Continues To Climb
Oil and natural gas producers boosted drilling activity with seven rigs in the past week, sending Baker Hughes’ (BHI) U.S. rig count up to a total of 877 units.
Six oil rigs came online during the week, while two natural gas rigs were added and one miscellaneous rig was removed.
In total, the U.S. land rig count is now up 462 rigs from a year ago when it stood at 415, Baker Hughes data showed. Oil rigs are up 375 in the past year, while natural gas rigs have risen by 87 and miscellaneous rigs are level.
The Permian Basin of West Texas and New Mexico once again saw the largest weekly gain, adding seven rigs. Oklahoma’s Cana Woodford Basin and Appalachia’s Marcellus Shale saw the greatest drilling decline with four and three rigs taken offline, respectively.
Oil prices rose slightly on Friday, on track for their biggest weekly gain in five weeks, helped by expectations of an extension of OPEC-led output cuts and buoyed by falling U.S. crude inventories.
OKLAHOMA SUMMARY – 118 Rigs – Minus 2
After hitting its highest point in 2 years two weeks ago, Oklahoma fell another 2 units this week to 118. The Cana Woodford fell 4 units to 51, still up 27 since June 24. The basin had 27 active rigs one year ago. The Arkoma Woodford declined 1 down to 8 rigs and Ardmore Woodford remained at 1. The Mississippian also decreased a unit and now totals 6.
The state has 2 directional rigs, 114 HZ rigs and 2 vertical rig drilling.
By county, 3 counties currently have double-digit HZ rigs running, Blaine (20), Grady (15), and Kingfisher (21).
Coal and Ellis Counties lost 2 HZ rigs this week, while Canadian, Garfield, Garvin, Hughes, and Major Counties all went down by 1 HZ rig each.
Counties on the upswing this week were Grady and Roger Mills, which moved up 1 HZ rig each, while Kingfisher and Pittsburg went up 2 HZ rigs each.
Check out our proprietary and interactive Rig Count Dashboard.
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.