Energy firms in the United States have added rigs to their oil assets for six weeks in a row. It’s the first time this happens since June 2018, as the industry still expects to recover and go on tailwind after the pandemic and world economic recession.
The indicator for this week was an increase by 5 to a total count of 287 for U.S. assets; by 3 to a total count of 83 for Canada. The growth is the highest since May, informed Baker Hughes this Friday.
During August, the total rig count fell to a low record of 244, while oil rigs alone fell dramatically to a 15-year low record of 172.
Although the increase reported today is a recovery point from August, it’s still 65% lower than last year’s same period. The total count of rigs this week being 543.
Recommended to you: Nuclear reactors in South Carolina & Missouri face quake risks
For market watchers, the increase in the rig activity is a well-expected recovery from spring’s crash in prices and the destruction of demand due to the covid-19 pandemic.
And although the prices per barrel have hovered around $40, with a recovery of 115%, demand is still weak, and the prices are still 33% down compared to last year’s.
North Dakota oil rigs gain activity
Nevertheless, Halliburton analysts consulted by Reuters said this week that there is a progressive improvement. Also, there’s an uptick in activity around unfinished wells.
Specifically, In North Dakota, oil production rose 12% in August, as more drilling rigs resumed their operations, the state’s regulator said.
With this indicator, the industry expects to gain more activity momentum in the upcoming weeks. Also to add more rigs during the ending quarter of this year and the first of 2021.
The rig counts published by Baker Hughes are important for market watchers and suppliers as a business barometer. When drilling rigs activate, they consume products and services produced by the entire oil industry.