Oil Drilling Rig Count Continuously Increased in 2016

Oil and Gas Drilling Rig Count continuously increased in three weeks in United States, the fastest growth since 2011.
FX168 reports: U.S. oil Service Company Hughes Beck released data on last Friday shows, until the week of 15th July 2016, the number of active oil and gas drilling rig count increased 6 to 357 at United States. Which is the third consecutive increased week.

Active oil and gas drilling rig count in U.S.

More data shows that by the week of July 15, the total active oil and gas drilling rig count increased by 7 to 447. Compared with same period last year decreased 416.
In 2015, the active oil and gas drilling rig count in the United States decreased by 963. It’s the first annual decline since 2002. While the annual decline has reached the largest since 1988. In the five years from 2010 to 2014, the active drilling rig count in the United States average increased by 216 per year. It has hit a high position of 1609 rigs in October 2014, but it has been reduced more than three quarters. While the crude oil prices fell sharply in the 4th quarter of 2014. After reaching to monthly top of 112 USD/barrel (bbl), and 105 USD/barrel at June, fell to 62 USD/barrel. According Brent and West Texas crude oil price. Since then the related industry reduce accordingly, including the oil drilling rigs, the oil and gas line pipes, line pipe steel plates and sheets.

U.S. active oil drilling rig count increased due to the crude oil demand increased.

In addition, Hughes Beck said in the report, the U.S. active natural gas drilling rig count increased by 1 to 89 at the same week. Because Hughes Beck’s data show that the active natural gas drilling count consecutive increased by three weeks. The oil price rise reduced slightly, although this will help the line pipe markets and line pipe steel price.

CNBC pointed that due to the United States and China’s crude oil demand outlook boosted. The oil price continually achieved good performance this week. At the same time, the U.S. oil and gas drilling rig count has also recorded an increase for the third consecutive week. This might make analysts expected the total oil drilling count has bottomed out in the United States, and the crude oil will be improved at the beginning of next year.

Oil drilling rigs have largest increase since 2011.

Financial blog Zerohedge pointed out the U.S. crude oil and gas drilling rigs increased 6 to 357, as the sixth week increased over the past seven weeks( a total number of 41 rigs), the maximum absolute added value since May 2014. The U.S. crude oil drilling rigs count leave out from the low position, and it increased more than 10% currently. As the largest increase since December 2011. Experts believe with the increased oil drilling rigs, more of the line pipe steel will be used and this will help the line pipe price increase for a moment.

As of Beijing time 1:38, the U.S. WTI crude oil futures reported $45.78 / Barrel, and oil futures prices reported $47.49 / Barrel.