Must-know: US oil rig counts are the highest in the last decade
Why the US rig count took a breather last week (Part 6 of 9)
The Bakken leads the oil rig increase last week
Last week, the Baker Hughes oil rig count increased by nine—from 1,592 to 1,601. The addition was driven by the Williston or Bakken at +4 and the Cana Woodford at +3.
This marks the highest oil rig count since February 2005.
Last week’s rise in U.S. oil rigs shows oil companies’ sustained ability to produce oil at current prices.
According to Baker Hughes, oil-targeted rig counts were setting and breaking new records almost every week. However, oil rigs experienced a temporary crash for the week ending August 22.
Since the beginning of 2014, the number of oil rigs increased by 223—or ~16%. In comparison, oil rigs increased by 51 during the same period in 2013. In 2014, most of the increase in rig counts was driven by activity in the oil-rich Permian Basin in western Texas. The region added 98 oil rigs.
See the previous part of this series to learn more about drilling activity in the Permian Basin.
Key stocks and exchange-traded funds (or ETFs)
Some of the major oil and gas producers that increased their oil-targeted drilling activities include Whiting Petroleum Corporation (WLL), Hess Corporation (HES), Marathon Oil Corporation (MRO), and Occidental Petroleum (OXY). These companies are part of the Energy Select SPDR ETF (XLE).
Click here to learn about the U.S. Energy Information Administration’s (or EIA) recent estimates on U.S. oil production.
Browse this series on Market Realist:
