Posted on 07/02/2015 12:59:11 PM PDT by thackney
The amount of U.S. rigs drilling for oil increased for the first time this year after 29 consecutive weeks of declines.
The number of actively drilling oil rigs jumped by 12 this week after several weeks of small decreases, which had indicated the streak of rigs being taken offline was nearing its end.
The overall rig count, however, only grew by three rigs, because nine rigs drilling mostly for gas were taken out of service, according to data from oil services provider Baker Hughes. That is a switch from last week when three oil rigs were lost, but the gas-focused rigs increased by five.
There were no major shifts in certain parts of the country. The rig count increased by three in Texas’ Eagle Ford Shale and grew by just one in the Permian Basin, according to the Baker Hughes count.
The first increase in oil rigs this year comes in the same week that oil prices took their biggest single-day dip in two months on Wednesday, in response to increased U.S. inventories and another production hike from members of the Organization of the Petroleum Exporting Countries.
The U.S. benchmark for oil had hovered around $60 a barrel since late April, but closed Wednesday at $56.96 per barrel, the contract’s lowest price since April 22 and its largest loss since a rout April 8 removed $3.56 per barrel.
Oil prices were up a little bit on Thursday in early trading.
As for the rig count, the total U.S. count is at 862 this week, according to Baker Hughes, while the oil rigs count jumped to 640 rigs. The number of active oil rigs has still plummeted by 969 rigs since the peak of 1,609 in October.
The U.S. Energy Information Administration had projected that U.S. oil production would fall for the first time this year in June.
probably has more to do with “drill or lose the lease” then any demand increases..
Is it real or a “manufactured / massaged” type of increase?
Rigs stacked in East Odessa this week showed an extra 2 OOS.
DBD
I wonder how many holes some of the Arabs have poked in single pools? ;-)
Talked to a buddy in Eunice NM yesterday that works for the RR. He says that traffic is moderate, but Halliburton near Monahans is going nuts with unit sand trains... adding 10 more turnouts to their facility off of Highway 18 that was opened in 2012. Schlumberger in Monahans proper had a really badly laid out 4 track yard they built in 2011-2012 (this is why you need an engineered plan for building track) is going to add another track (good luck with that).
The Genesis transload yard near Wink, TX just got a delivery of 94 tanks in a unit train for outbound loads. Over in Artesia, NM a transload yard another buddy of mine build is expanding his new facility as well... I am being called to go out and appraise the 1st phase of construction to secure financing for Phase 3. He says he is absolutely going flat out there. Things ARE ramping up in the Western Permian Basin... and it looks like I’m going “home”.
Thanks for the info
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