Crude Oil Drillers Focused On Texas

Posted by: : Paul EbelingPosted on: July 12, 2014 Crude Oil Drillers Focused On Texas

Crude Oil Drillers Focused On Texas

Drilling rigs targeting Crude Oil in the US hit a record for a 5th wk runnning as companies ramped up drilling in shale formations across the South.

Oil rigs increased by one to 1,563, the most since Baker Hughes Inc. (NYSE:BHI) separated its Crude Oil and Nat Gas counts in Y 1987, the company’s website showed.

They rose the most in the Granite Wash shale formation of Texas and Oklahoma and the Eagle Ford in South Texas. The Nat gas count was unchanged at 311, the Houston-based field services company reported Friday

Total rigs in the US have risen by 118 this year, driven by a rise  in horizontal drilling that’s drawing record volumes of Crude Oil out of shale formations across the middle of the nation. The boom has raised domestic Crude Oil production to the highest level in more than 25 yrs.

US Crude Oil production climbed 72,000 BPD in the week ended 4 July to 8.51-M BPD, the highest level since Y 1986, EIA data show.

WTI (West Texas Intermediate) Crude Oil for August delivery fell 2.10, or 2%, to finish at 100.83 bbl on the New York Merc Friday. Prices have risen 2.4% since the beginning of this year.

Both the Granite Wash and the Eagle Ford added 5 rigs this week, rising to 218 and 75, respectively. The Permian Basin of Texas and New Mexico, the largest onshore Crude Oil play in the US, gained 3 to 563. The Nat Gas-rich Barnett shale in Texas lost 2 to 24.

US Nat Gas stockpiles rose 93-B cubic feet last week to 2.022-T, EIA data show. Supplies were 24.4% below yr-earlier inventories.

Nat Gas for Aug delivery rose 2.6 cents, or 0.6%, to 4.146 per million British thermal units on the NYMEX, + 15% in the past year.

Have a terrific weekend.

Paul Ebeling

HeffX-LTN

 

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.
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