Texas leads with 13 drilling rigs added in a week
Energy companies brought out 13 more rigs actively drilling for oil and gas in Texas this week as oil prices rebounded to hover just below $50 a barrel.The rig count is still down 80 percent from its high in 2014 before the price of oil dropped. It has a way to go, but the fact that it is coming back in the shale fields undercuts the thinking of OPEC,
This was the third consecutive week of rig count increases nationally and the largest three-week jump since July. The number of oil rigs had sunk almost every week from August through the end of May, and has begun a slow turnaround, analysts contend.
“This is the beginning of the end of the oil market weakness,” said BP Chief Economist Spencer Dale. “The oil market has turned a corner.”
Texas’ Eagle Ford and Permian shale areas added four rigs each, while the Barnett shale in northern Texas added five rigs to its existing two, according to weekly data collected by Houston’s Baker Hughes oil field services company.
Texas accounted for almost all the national growth this week. Overall, nine oil rigs were added to the market and one new gas-seeking rig came online. The overall rig count stands at 424 — 337 seeking oil and 86 seeking natural gas. Louisiana and Alaska each lost one rig. Another lost rig was not disclosed.