Active Rig Count - Dec 10

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The number of rigs drilling in North America increased by 57 rigs over the course of the week as oil prices remain above $50 per barrel, according to information from Baker Hughes Industries. 27 rigs were added to the United States’ total, while an additional 30 rigs became active in Canada.

Of the rigs added in the U.S., 21 were targeting oil, the largest increase in oil rigs in the last six months.

The total number of rigs drilling for oil in the U.S. now stands at 498, 26 less than at this time last year. The number of rigs drilling for natural gas increased by six week-over-week to 125, 60 less than at the same time in 2015. < U.S. natural gas production is falling

The increased rig activity in the last six months has brought the number of active rigs close to year-ago levels in most basins across the U.S., with three now reporting more activity than a year ago. The DJ, Permian and Utica all reported more drilling activity in the week ended December 9, 2016 than at this time last year. The DJ reported 24 rigs, up one, the Permian reported 246 rigs, up 42, and the Utica reported 19, up 3 from a year ago. The Cana Woodford was down two rigs week-over-week to 37, leaving it at the same level as this time last year.

Drilling in Canada is significantly higher this week than during the same week in 2015, according to Baker Hughes. Canada reported 230 active rigs this week, up 30 from last week, and 56 from a year ago. This week’s increase represents a 32% increase year-over-year.

Keep an eye on Precision Drilling Corp (PDS). This former Sweet 16 company is the #1 drilling company in Canada.