Offshore Rigs Rise despite Weak Crude Oil Prices
In the week ending July 2, 2015, the US offshore rig count rose by one to 29—compared to the previous week. They’re more expensive than onshore wells.
According to oil service company Baker Hughes (BHI), the horizontal rig count rose by three in the week ending July 2, 2015—the first rise in eight months.
Currently, there are 640 working oil rigs in the US. The Permian Basin has 231 of the rigs. Its oil rig count rose by one in the week ending July 2.
For the week ending July 2, among the key shale rigs, crude oil rigs rose by three in the Eagle Ford Shale and two in the Williston Basin.
Baker Hughes (BHI) reported that the weekly US crude oil rig count rose by 12, from 628 to 640, in the week ending July 2—the first rise in 29 weeks.
In the week ending July 2, the US rig count rose by 12 active crude oil rigs—partially offset by a fall of nine natural gas rigs.
According to Baker Hughes, there were 862 active oil and gas rigs in the US in the week ending July 2—three more than the previous week ending June 26.
The Alerian MLP ETF (AMLP) ended its two-week losing streak on Thursday, July 2. It rose 1.10% yesterday. It has returned -11.02% YTD.
Tallgrass Energy Partners (TEP) was the top loser among the midstream MLPs in yesterday’s trade. It fell 1.95%. It has returned 6.67% YTD.
Martin Midstream Partners (MMLP) continued its winning streak on Thursday. After rising 2% on Wednesday, it rose 3.13% yesterday.
On Friday, June 26, Baker Hughes disclosed the US rig count. Crude oil rose 0.25% to $59.64. The rig count held around that level after the announcement.
In the week ending June 26, 2015, the US offshore rig count rose by one to 28. The offshore rig count is nearly 58% off its four-year high of 66 in August 2014.
During the week ending June 26, the US onshore rig count rose by one from the previous week’s count. Last week, there were 831 onshore rigs.
The horizontal rig count fell by eight in the week ending June 26, 2015—compared to the previous week’s count. It has fallen for 31 weeks in a row.
The Williston Basin lost 58% of its crude oil rigs in the past year. It includes the Bakken Shale—one of the most prolific crude oil shale plays in the US.
In the US, there were 228 natural gas rigs operating in the week ending June 26—five more than in the previous week. This was the second week with an addition.
Baker Hughes (BHI) reported that the weekly US crude oil rig count fell by three, from 631 to 628, in the week ending June 26. Rigs have fallen for 29 weeks.
In the week ending June 26, the US rig count rose by five active natural gas rigs, partially offset by a fall of three crude oil rigs.
There were 859 active oil and gas rigs in the US in the week ending June 26—two more than the week before. The US rig count rose in December 2014.
The United States Oil Fund (USO) fell 3.92% yesterday. Crude oil prices hit a two-month low in yesterday’s trade on a surprise rise in US crude oil stockpiles.
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