Baker Hughes data shows that US oil producers gained a total of 19 oil rigs in the past week, with Texas alone seeing a net gain of eight rigs – proving that operations are moving forward, despite current oil price challenges.
This week’s rise in the rig count was the biggest increase since April 2014. Oil prices had held steady in May and June at $60 per barrel, but, with the recent threat of Iranian oil flooding the market, the number of active rigs in the Eagle Ford shale play fell below the 100 mark for the first time in more than five years.
However, despite falling crude oil prices, Baker Hughes rig count data released July 24 revealed an increase in new drilling. The number of active drilling rigs in the US increased despite the commodity price for crude oil dropping to nearly $48 per barrel this week. The number of rigs operating in the Eagle Ford shale play went from 98 active rigs to 100 active rigs. Drillers also added three rigs in the Permian Basin, and one each in the Niobrara and Bakken plays.