It’s definitely not a little hop, or even a skip. This week’s rig count jump might even be classified as a huge leap of faith as reports across the industry indicate a the oil and gas industry is on the road to recovery. This week, large acquisitions–on by Exxon Mobil and another by Noble Energy–indicate further optimism that activity will continue to increase. CEO Paul Hibsgaard of Schlumberger also said that recovery is “on its way in all markets.”
Of the 35 total new rigs this week, 29 of the new rigs are exploring for oil while 5 are exploring for gas. Texas led the increases with 17 new rigs, but a surprising increase of 7 rigs in Oklahoma warrants attention. The Woodford Cana Basin now has 46 total rigs, only 3 fewer than the prolific Eagle Ford. A year ago, the Cana Woodford only had 39 rigs whereas most other basins had more rigs last year.
Other statewide rig count increases this week include the following:
The price of WTI crude is currently up at $52.53 while Brent Crude sits at $55.46 (12:55 CST). However, Oilprice.com indicates that the price could dip as the U.S. production increases “may very well undo whatever measures OPEC is undertaking to lift prices out of the early 2016 doldrums.”