Oil rig production has climbed in pace with recent trends in oil pricing.
U.S. oil rigs prowling for oil have sprung up to 672 with two more added this week marking the fourth consecutive week of increases. Yet the number of gas rigs has dropped by an equal number. Oil prices have buoyed up from Thursday’s six-year lows.
And up to this point, the oil rig count fell from October’s number of 1,609 as producers cut back on drilling amid the lower prices. Because of the slack in oil rig development, U.S. production has taken a hit.
Further, data recorded by the U.S. Energy Information Administration, the U.S. pumped roughly 100,000 barrels per day less in July than June. U.S. production has expected to decline through mid-2016 before a predicted uptick.
But U.S. oil companies began following May and June’s trends when prices hit $60 a barrel. Although the pace has leveled off, the rig inventory has grown to six over the past seven weeks.
Among the major oil and gas-producing states, Texas climbed to six rigs, Alaska rose to three and Colorado, Kansas and Wyoming each reached two. In contrast to the boom in these states, Louisiana and Oklahoma dropped by four rigs apiece, North Dakota and New Mexico slipped by two, and Ohio, Pennsylvania and West Virginia lost one each. Arkansas, California and Utah’s figures remained the same.
Source: Longview News Journal