Reuters (10/14, DiSavino), KOSA-TV (10/16, Thatcher)

Thursday, January 25, 2018

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Reuters (10/14, DiSavino) reported the number of US oil rigs rose again this week, “extending one of its best recoveries with no cuts for 16 straight weeks, with analysts expecting more additions as crude prices hold over $50 a barrel.” Drillers added four oil rigs in the week, bringing the count up to 432, “the most since February, but still below 595 rigs a year ago,” according to Baker Hughes on Friday. Analysts “said prices over $50 were high enough to prompt energy firms to return to the well pad.” The Wall Street Journal (10/14, Stahl, Subscription Publication) reported the US gas rig-count increased 11 to 105 in the past week, while the offshore rig-count held steady at 23, which is down 10 from 2015. Analyst: Permian Basin Could See Increase Of 200 Rigs. KOSA-TV Odessa, TX (10/16, Thatcher) reports oil and gas consultant Morris Burns “said we could be seeing an increase of about 200 rigs right here in the Permian Basin.” Burns explained that many companies will be increasing their drilling budget next year: “We’re not using the oil that we’ve got and that’s why the price went from $100 down to $26 in February and of course its doubled since then.”