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The Baker Hughes rig count for December 1, 2017 showed a total increase of 6 rigs, four of which are in the Permian Basin. Photo: Ralph Kelley.

Rig count continues to increase with help from OPEC

The total U.S. rig count, according to last Friday’s numbers from Baker Hughes, showed an increase of 6 new rigs exploring for oil and gas, for a total of . The rig count showed a decline of two rigs offshore. The total indicated an increase of two rigs exploring for oil while the gas count went up by 4.

Below is the data by Basin:

Ardmore Woodford 1 0
Arkoma Woodford 8 0
Barnett 4 -1
Cana Woodford 72 -1
DJ-Niobrara 25 -1
Eagle Ford 67 0
Fayetteville 0 0
Granite Wash 10 0
Haynesville 43 3
Marcellus 42 0
Mississippian 6 1
Permian 397 4
Utica 30 0
Williston 48 1

By state, Colorado and Louisiana each lost one rig. Kansas, New Mexico, North Dakota, and Utah each gained an additional rig. Texas saw four new rigs exploring for oil and gas, all of which popped up in the Permian Basin, which has seen a steady growth since new reserves were discovered in 2016.

According to OilPrice.com, the boost to the oil rig count was partly thanks to OPEC’s newly extended production cut deal.

“The boost to the number of oil and gas rigs in the US is likely just a taste of what’s to come if oil prices continue to climb as a result of OPEC’s prolonging of the deal that is designed to ease the glut. And at current prices of WTI, US drillers are bound to find sufficient funds to add rigs, pressuring the prices that OPEC is attempting to hold fast,” wrote Julianne Geiger, a researcher for the US-based Divergente LLC consulting group. “And at current prices of WTI, US drillers are bound to find sufficient funds to add rigs, pressuring the prices that OPEC is attempting to hold fast.”

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