The Baker Hughes weekly rotary rig count showed an increase of 12 total rigs July 7 for a total of 952 rigs drilling for oil and gas in the United States. Of the 952, 763 rigs are drilling for oil, up 7 from last week, while 189 are drilling for gas, an increase of 5.
By state, Alaska and Oklahoma each increased by 4 rigs. Louisiana and Texas were up 2 rigs each. Utah and New Mexico each dropped one rig.
By basin, the Cana Woodford saw an increase of 4 rigs. The Arkoma Woodford was up 1. The Granite Wash and Haynesville basins were each up 2 rigs. The Mississippian and Permain basins each dropped one rig.
According to Myra Saefong of Marketwatch, oil prices dropped sharply at the end of Friday, showing about a 4 percent loss for the week. Saefong noted that the continued climb in rig count brought with it concerns that the OPEC-led efforts to cut production and boost oil prices are doomed. Additionally, the EIA released reports this week that U.S. shale production continues to increase, leaving the global oil market at even more of an imbalance. The EIA showed U.S. production rose just over 1 percent to 9.34 million barrels per day.
Oil closed today at just over $44 per barrel.
On a side note, the rig count that so many of us rely on continues to be delivered reliably after Baker Hughes was acquired Thursday by General Electric (GE).