Shale Producers are Pacing Up Activity Nationwide
On Friday, crude futures increased slightly in the afternoon session as reports revealed that U. S. oil active rig counts moved up in the past week.
That signals at some dormant shale producers pacing up output all round the nation.
Analysts say that "confidence" is coming back to the oil patch.
Baker Hughes Inc. on Friday reported that the Permian Basin added four rigs with Texas adding three.
Among the land based rigs, nine joined the activity making the total number of U. S. rigs running to 440 (oil and gas).
Five rigs in total; two oil and three gas, returned to activity in Canada. That makes the active rig count in Canada to eighty one and the North American count to 521.
Baker Hughes, the oil services firm reported a rise in U. S. oil rig count by ten to 351 in the week that ended July 1. That makes it fifth weekly increase in domestic rig count in the past six weeks.
According to Baker Hughes, average oil rig count climbed by approximately two percent in June on a monthly count but dropped about fifty percent compared to one year ago.
Owing to the low oil prices, many of the U. S. shale producers had to cut down on drilling capacity but several of them have shut down only the least efficient out of the rigs.