It’s only the middle of January and everything is pointing to a good year for the oil and NatGas companies. Below is this week’s rig count report from Baker Hughes. The U.S. land rig count was up a whopping 36. It’s the largest increase in over a year.
Baker Hughes Rig Count the week of January 20, 2017
- TOTAL U.S. Land Rig Count 670 up 36
- Marcellus 33 up 1
- Utica 21 up 2
- Marcellus 9 up 1
- Eagle Ford 49 up 2
- TX & NM
- Permian Basin – 281 up 13
- Williston – 35 up 3
- Niobrara – 23 unchanged
This past Saturday WSJ had a major article discussing the increases in capital spending. Here’s the quote from the article, “Preliminary capital spending plans released in recent weeks by more than a dozen American shale drillers show an average 60% budget increase for the group.”
In reading various forecasts and hearing projections on CNBC, the consensus is that the price of oil will range from $50 – $60 and possibly going to $70. The NatGas forecasts around $3.50. At both of these price levels the drillers will be able to make a good profit.
In all of this planning the unknown is the impact of the Trump administration. Energy independence is one the top initiatives of the new administration.
As usual, we’ll be monitoring the administration and we’ll keep you update on all its actions that affect the O&G industry.