Several rigs added outside of the Permian this week, with a very strong increase in the Granite Wash basin. Rigs in the Permian also continued to rise, as usual. Crude oil (NYSEARCA:USO) closed unchanged compared to the previous week and continued to trade in the same narrow range it has traded since the beginning of the year.
Source: Baker Hughes
* Total U.S. rig count (oil + gas) increased by 10.
* The total oil rig count increased by 6. In total, oil rigs are up by 89% since the bottom in late May 2016. Virtually all of the rigs added have been horizontal.
* Horizontal rigs increased by 7. In total, the horizontal rig count is up by 96% since the bottom in late May 2016. Most of these rigs have been oil rigs.
*Source: Baker Hughes, Orangutan Capital
Strong activity outside of the Permian for a fifth week in a row. A third basin, Granite Wash, registered a very sharp increase in the rig count providing evidence that financing is widely available for shale producing regions.
* The Permian oil rig count increased by 2, although we believe that at least four new horizontal rigs were added in the basin. In total, the rig count in the Permian is up by 129.5% since the bottom in late April / early May 2016. Virtually all of the rigs added have been horizontal.
* Cana Woodford and Eagle Ford, which have seen a lot of activity recently, added and dropped two rigs and one rig, respectively.
* Granite Wash, which is a basin located between Oklahoma and Texas, added 5 new rigs during the week. This is a basin that had only 2 oil rigs left at the bottom of the current cycle during April 2016. Not counting the Permian, Granite Wash is now the third basin, after Eagle Ford and Cana Woodford that has seen strong increases in the rig count.
* The natural gas count increased by 4 this week, with three new rigs in the Haynesville basin.
Another strong week for rig count increases, with a lot of activity in the Granite Was basin. Along with the increases in Cana Woodford and Eagle Ford we have seen since the beginning of the year, this is solid evidence that financing is widely available, not only for Permian producers, but also for activity in shale producing regions.
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