By July 21, 2017 Read More →

US gas and oil rig count down by 2, Canadian rig count up 15

rig count

Baker Hughes reports the US rig count is down for the second week since January. Encana photo.

Rig count expected to continue rising through at least 2019

In its weekly review, General Electric Co’s Baker Hughes reports the US rig count fell for the second week since January and now sits at 950.

Drillers cut one oil rig and one gas rig in the week ending July 21.

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During the same period in 2016, the US rig count was at 371.  According to the energy services company, drillers have added 54 rigs since the beginning of June 2016.

In recent months, the rate of US rig additions has slowed and have averaged 2 over the past four weeks as oil prices remain mired under $50/barrel.

The rig count in Canada rose by 15 to 206 and is more than double the 102 active rigs at this time last year.

Analysts say the decline this week is likely a brief pause and the recovery in drilling activity is expected to continue through at least 2019.

On Friday, oil prices tumbled after an energy analyst estimated an increase in OPEC production in July to over 33 million barrels per day (b/d).  US crude futures were down almost 2 per cent this week to under $46/barrel.

Along with higher OPEC production, US shale oil production is expected to rise for an eighth straight month to 5.6 million b/d in August, according to the US Energy Information Administration.

Federal projections show US output to increase from 8.9 million b/d in 2016 to 9.3 million b/d in 2017 and 9.9 million b/d in 2018.

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