Active Rig Count - May 27

[dan_s]

The North American active rig count held steady at 404, the lowest number of active rigs in over 70 years.

United States:
> Rigs drilling for oil down 2 to 316, compares to 1,609 in October, 2014 (the peak) and 646 a year ago.
> Rigs drilling for gas up 2 to 87, compared to 225 a year ago.

My SWAG is that we need at least 600 rigs drilling for oil and 300 rigs drilling for gas to hold production flat.

Canada rig count is down 1 to 43, compared to 98 a year ago. Only 14 rigs drilling for oil in Canada, compared to 44 a year ago.

The U.S. rig count will probably flop around in the 400-420 range this summer. I believe it will take oil over $60 before we see any steady increase in the active rig count.