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The number of U.S. rigs exploring for oil increased for a second straight week as crude prices rose to a five-month high.
Recent gains represent a turnaround after the rig count fell for the past four months as independent exploration and production companies cut spending on new drilling to focus on earnings growth instead of increased output. However, major oil companies are boosting their presence, particularly in the Permian Basin, the nation’s largest shale oil field.
On Friday, Chevron Corp. said it was buying Anadarko Petroleum Corp. for $33 billion in a deal that doubles down on its bet on U.S. shale and propels the world’s fourth-largest oil major into the second position in crude production and the leading U.S. oil producer.
U.S. crude futures rose to a five-month high near $65 a barrel in the past week as supply cuts from Venezuela and Iran plus conflict in Libya supported perceptions of a tightening crude market, while upbeat Chinese economic data suggested stronger global demand.
As prices continued rising Friday, they were on the way to a sixth straight week of gains.
Weekly Summary: Total rigs engaged in the exploration and production in the U.S. slipped for the week ended April 12, 2019, decreasing 3 rigs falling to 1022. Land rigs dropped 4 rigs to 996. The offshore rig count climbed 1 rig increasing to 23. Rigs drilling in the inland waters were flat at 3 rigs running.
Oil Rig Count: The US crude oil rig count gained 2 rigs, climbing from 831 up to 833 for the week. There are 18 more rigs targeting oil than last year. Rigs drilling for oil represent 81.5 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 in August of 2017 – lost 5 rigs down to 189. The number of rigs drilling for gas is 3 rigs lower than last years count.
AMONG MAJOR OIL- AND GAS-PRODUCING STATES:
Texas gained 3 rigs, while Kansas and Ohio gained one rig each.
EIGHT states were unchanged, namely Alaska, Arkansas, California, Colorado, Louisiana, North Dakota, Utah, and Wyoming.
Oklahoma and Pennsylvania lost 3 rigs each, while New Mexico dropped 2 rigs and West Virginia lost one rig.
Summary of Major Plays – Ranked By Rig Count
– Permian Basin 464 rigs compared to last week’s 462 rigs
– Eagle Ford 77 rigs compared to last week’s 78 rigs
– Cana Woodford 48 rigs compared to last week’s 50 rigs
– Williston 61 rigs compared to last week’s 61 rigs
– Marcellus 62 rigs compared to last week’s 68 rigs
– Haynesville 56 rigs compared to last week’s 58 rigs
– DJ-Niobrara 30 rigs compared to last week’s 30 rigs
– Utica 18 rigs compared to last week’s 15 rigs
– Granite Wash 9 rigs compared to last week’s 8 rigs
– Arkoma Woodford 1 rigs compared to last week’s 3 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