U.S. Oil Rig Count Hits 14-Month High

The US oil rig count rose for the 12th time in 13 weeks, jumping by 15 to the highest level since Nov. 25, 2015, Baker Hughes (BHI) data showed on Friday. Oil prices fell, heading for a first weekly drop in four.

The tally compares to 498 in the same period a year ago, while the oil and gas total for the week was up by 18 to 712 versus 619 a year earlier. The North American oil and gas total rose by 21 in the week to 1,057, ahead of the count in the same period of 2016 which stood at 850.

Assuming the US oil rig count stays at the current level, Goldman Sachs said in a report Jan. 20., the US oil production would increase by 315,000 barrels per day (b/d) between Q4 2016 and Q4 2017, across the Permian, Eagle Ford, Bakken and Niobrara shale plays. The year-on-year production will rise by 265,000 barrels per day in 2017 if “we account for the impact of the estimated remaining county-level well backlog being gradually brought back online between Q4 and H1.”

By Kristin Senesi