Rig Count Rises in Week 06 as Crude Oil Soars
Houston based oil field Services Company Baker Hughes reported that Oil & Gas companies put twelve more drilling rigs into operation in Week 06. While US rig count jumped by 5 WoW to 397, Canadian rig count alos added 5 rigs WoW to 176. However, International rig count in January 2021 improved by 12 WoW to 677, but still down by 401. The rig count has recovered with oil prices in recent months from a bottom of 244 in August 2020, but remains about half the 790 rigs operating a year ago. Oil prices have risen steadily since topping USD 50 a barrel last month as OPEC and its allies maintain production curbs and supplies shrink.
Rotary Rig Count Breakout
Oil – 407, +13 WoW & -443 YoY
Gas – 165, -3 WoW & -28 YoY
Miscellaneous – 1, flat WoW &-1 YoY
Baker Hughes has issued the rotary rig counts as a service to the petroleum industry since 1944, when Baker Hughes Tool Company began weekly counts of US and Canadian drilling activity. Baker Hughes initiated the monthly international rig count in 1975. The Baker Hughes Rig Counts are an important business barometer for the drilling industry and its suppliers. When drilling rigs are active they consume products and services produced by the oil service industry. The active rig count acts as a leading indicator of demand for products used in drilling, completing, producing and processing hydrocarbons.