Baker Hughes released its weekly oil and gas rig count report on November 10, 2017. It estimated that US oil rig counts rose by nine to 738 on November 3–10, 2017—the biggest weekly addition since June 2017. Oil rigs rose because US crude oil (DTO) (DWT) (UWT) prices are trading near a 30-month high. Rigs rose 1.2% week-over-week and 63.3% year-over-year.
Peak and low
US oil rigs hit a record 1,609 in October 2014. On the other hand, the rigs tested 316 in May 2016—the lowest level since the 1940s. The rigs have risen by 422 or 134% since May 2016.
US shale oil production
The EIA released its monthly drilling report on November 13, 2017. It estimates that US shale oil production would rise for the 12th consecutive month in December 2017. Production would rise mainly in the Permian, Niobrara, and Bakken shale regions during this month. For more details, read Part 1 of this series.
US crude oil rigs have fallen by 28 or 4% since July 28, 2017. They’re also near a six-month low. However, US oil (UWT) (DWT) prices have risen more than ~30% since the lows in June 2017. Higher oil prices could increase US drilling and supplies and weigh on oil (USL) (UCO) prices.
Read Why Doubts Linger about Sustainability of Crude Oil Bull Market and Are Hedge Funds Turning Bullish or Bearish on Natural Gas? for the latest updates on crude oil and natural gas.