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Permian And Eagle Ford Recover As Rig Count Rises To 8 Month High

This week’s Baker Hughes report shows an 11-rig increase in the United States oil count, marking 17 straight weeks of no-decline in the active rig figure.

The streak suggests a strong recovery for the U.S. drilling sector, which was hit hard when oil prices dropped for the first time two years ago due to a global supply glut.

The last time the Houston-based oilfield services company reported an oil-rig count this high was in its February 5th report, meaning the figure has reached an eight-month record.

Still, the oil rig count sits 151 rigs below the 594-rig figure reported during the same period last year.

(Click to enlarge)

Image courtesy: Zerohedge.com

“Apparently $45/50 oil is high enough for shale producers to come storming back in,” Zero Hedge said.

The gas count saw a three-rig increase to 108 rigs, but is still 85 rigs lower than the count last year.

Texas’ rigs increased in number by 10 sites, after losing 3 in last week’s report. Wyoming gained three, while Alaska and Utah saw a one-rig jump.

The Permian and Eagle Ford basins saw a combined increase of 13-sites, after losing six rigs last week.

Mississippian and Haynesville gained one rig each, and the DJ-Niobrara site lost one, becoming the only basin to lose a rig this week.

West Texas Intermediate traded flat at $50.63 after the count was released, and Brent traded up 0.41 percent at $51.59 at the time of the report’s writing.

Zainab Calcuttawala for Oilprice.com

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