Houston oilfield services company Baker Hughes reported Friday its weekly rig count report.
The oil market is “stretched to the limit” despite the fact that OPEC+ agreed to ramp up production following their meeting last month, according to the International Energy Agency.
The IEA said that the increased supply from Saudi Arabia, its Gulf allies and Russia is “very welcome,” given the series of outages reported around the world.
Indeed, the sudden and unexpected outage from the North African country over the past few weeks illustrates the degree of risk facing the oil market, which is to say, if oil prices can swing by 6 percent on a given day because of the specific events in one rather unstable country, the market is pretty tight and pretty vulnerable.
Closing Oil Prices – Friday, July 13, 2018
U.S. oil prices finished higher on Friday, trimming their loss for the week down to less than 4%, as traders weighed pressure from an expected rise in Libya exports against support from signs of tighter global supplies. August West Texas Intermediate crude CLQ18, added 68 cents, or 1%, to settle at $71.01 a barrel on the New York Mercantile Exchange. It lost about 3.8% for the week.
September Brent crude, the international benchmark, was up 88 cents to $75.33 per barrel.
Weekly Summary: Rigs engaged in the exploration and production in the U.S. gained +2 for the week ended July 13, 2018, climbing to 1054. Land rigs gained 1 to 1030. The offshore rig count was flat at 19. Rigs drilling in the inland waters gained 1 up to 5.
Oil Rig Count: The US crude oil rig count remained flat at 863 for the week. There are 98 more rigs targeting oil than last year. Rigs drilling for oil represent 81.8 percent of all drilling activity.
US oil rigs tested an all-time high of 1,609 in October 2014. In contrast, the rigs hit 316 in May 2016—the lowest level since the 1940s.
Natural Gas Rig Count: The natural gas rig count – which plunged to its lowest last August – gained 2, increasing up to 189. The number of rigs drilling for gas is 2 higher than last year’s level of 187.
AMONG MAJOR OIL- AND GAS-PRODUCING STATES:
Texas gained two rigs and Colorado and Louisiana each increased by one.
Nine states were unchanged this week, namely Arkansas, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, Utah, West Virginia and Wyoming.
Alaska and California each lost one rig.
Summary of Major Plays – Ranked By Rig Count
– Permian Basin 476 rigs compared to last week’s 475 rigs
– Eagle Ford 81 rigs compared to last week’s 81 rigs
– Cana Woodford 69 rigs compared to last week’s 68 rigs
– Williston 57 rigs compared to last week’s 57 rigs
– Marcellus 53 rigs compared to last week’s 53 rigs
– Haynesville 49 rigs compared to last week’s 49 rigs
– DJ-Niobrara 25 rigs compared to last week’s 25 rigs
– Utica 23 rigs compared to last week’s 23 rigs
– Granite Wash 15 rigs compared to last week’s 16 rigs
– Arkoma Woodford 8 rigs compared to last week’s 8 rigs
For more details on the latest national and state news regarding last Friday’s Baker Hughes rig count data, check out the interactive rig count dashboard on the Oklahoma Index tab of our website.
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.
SOURCE: Baker Hughes