Canadian rig count down by 14
In the weekly Baker Hughes rig count, data showed the US rig count rose again last week, however, the pace of additions has slowed in recent months as oil prices continued to slump.
US drillers added seven oil rigs and five gas rigs in the week ending July 7. The total US rig count now sits at 763, the highest since April 2015. At this time last year, the count was at 351.
Drillers have added rigs in 54 of the past 58 weeks since the beginning of June 2016.
On Friday, US crude futures fell by 2.5 per cent and were trading around $44/barrel. The contract is on track to fall for a sixth week in the past seven as data shows US production continues to increase and is overshadowing OPEC’s efforts to cut the global crude glut.
US crude output rose by 1 per cent to 9.3 million barrels per day (b/d) last week, reversing the drop in the previous week which was due to maintenance and shutdowns due to Tropical Storm Cindy.
In Canada, the rig count fell last week by 14 to 175, but is still more than double the number of rigs up and running at this time last year.
Some analysts believe US shale companies will continue to drill for oil if crude prices rise in the coming months. Futures for the remainder of 2017 were trading at about $44.50/barrel and calendar 2018 was at over $46/barrel.
Harold Hamm, chief executive of Continental Resources, said in a recent interview with CNBC that oil prices need to be above $50 to be sustainable.
Hamm said prices below $40 would force producers to idle rigs again.
