US Oil Drillers Add Rigs, But North American Count Falls

Of the total, 416 of them are primarily drilling for oil.

The number of rigs exploring for oil and natural gas in the USA declined by two this week to 506. But the oil rig count is down 74 percent from its peak of 1,609 in October 2014, before oil prices began plummeting. Offshore development increased slightly with the global offshore rig count increasing by two month-on-month to 228 in August. That decline continued through the first half of this year when drillers cut 206 rigs.

North American markets showed some of the strongest growth with average USA rig count for August up 32 to 481.

Louisiana declined by two rigs and North Dakota and Texas fell by one each. They were on track to fall 6 percent for the week on September 16. This represents a stabilization in rig count after a fall of 679 compared with August previous year 2,226 counted in August 2015.

Among major oil- and gas-producing states, Oklahoma gained three rigs and Alaska was up one.

Analysts at Simmons & Co., energy specialists at US investment bank Piper Jaffray, forecast total oil and natural gas rigs would average 498 in 2016, 704 in 2017 and 981 in 2018.