Oil has slowly begun to turn from last the spring setback, continuing a slow but persistent rise since falling into an undesirable territory in April.
On May 15th WTI closed at $29.52. Since that day prices have climbed and closed at $40.73 on June 22nd. This is the first time oil prices have exceeded $40.00 since the beginning of March.
The steady rise in prices is a result of the U.S. – China trade deal remaining intact despite the increase of COVID-19 cases.
The Energy Information Administration reported Wednesday, June 17th that U.S. crude inventories rose by 1.2 million barrels for the week ended June 12. However, analysts say that global oil demand will drop in the second half of the year, but at a slower rate. This is subject to the lockdowns of businesses to limit the spread of the coronavirus.
The Baker Hughes rig count report shows 266 active drilling rigs in the US as of June 19th. The oil rig count is 189 rigs, and the gas rig count is 75. One year ago, the total active land rig count was 939. Oil rigs are down 600, and gas rigs are down 102 compared to the June 2019 counts.
*Data from June 26, 2020, Baker Hughes Report.
|Bakken Region Total: 10
North Dakota: 10
|Rocky Mountain Total: 55
New Mexico: 50
|Central Plains Total: 10
|Gulf States Total: 33
Louisiana North: 21
Louisiana South (land & offshore): 11
|Texas Total: 112
District 1: 2
District 2: 9
District 3: 6
District 4: 1
District 5: 0
District 6: 11
District 7B: 2
District 7C: 11
District 8: 67
District 8A: 2
District 9: 1
District 10: 0
|Appalachian Total: 36
West Virginia: 5
In the major plays, the Permian Basin rig count is at 132 rigs, down 30 from last month.
In east Texas, the Eagle Ford shale is at 11 active rigs, which is 11 fewer than the April count.
The Haynesville shale rig count is at 32 rigs, same as one month ago.
The Anadarko rig count is 9, which is a decrease of three rigs from May.
In the Rockies, the active rig count in the Niobrara Shale is 7 rigs. The count is down five rigs over the last month.
The Bakken Shale rig count is 10 rigs, 1 less than the May count.
The Appalachian has 36 active rigs, down two rigs from May.
For more detailed news and information on the oil industry please visit our oilfield news and information page.
TCI Business Capital is a leading provider of accounts receivable factoring for oilfield service companies. Factoring is a type of financing many companies use to get immediate cash for their open receivables.