Oil rig count climbs for third straight week

Baker Hughes reported the U.S. rig count was up by 10 this week to 884 rigs in operation, with 670 of them looking for oil (an increase of six rigs) and another 213 for natural gas.

The oilfield providers provider assures the rig counts are “an necessary enterprise barometer for the drilling business and its suppliers”.

The overall US rig count hit 2,031 in September 2008, the highest it had been since July 1987, according to Baker Hughes. However, oil prices have since dipped below $45 a barrel; because there is a lag time between commodity prices and producers in the filed, analysts believe the rig count will again start declining in the coming weeks. This figure reverts the downtrend seen last week.

In the United States, Texas was the biggest gainer, adding eight rigs, thanks largely to the Permian Basin, which saw its census climb by six. Others have started adding more rigs. “The active rig count acts as a leading indicator of demand for products used in drilling, completing, producing and processing hydrocarbons”. Baker Hughes initiated the monthly global rig count in 1975. However, it still implies a considerable decline from the 1908 rigs registered a year ago.

“We forecast y/y production growth of 1.7 Bcf/d in 2016”, the firm said.