Oil Rig Count Sees Biggest Increase In 10 Months
The number of operational oil rigs increased by 12 this week, bringing America’s total to 759. This is the biggest increase since March, 2017.
Why? American oil production is booming under President Trump. Just last November, weekly US crude oil production hit a record highs.
Part of the reason for higher oil prices is OPEC’s decreasing predictability, and the corresponding increased price of oil. Bloomberg reports:
Helmerich & Payne Inc., the biggest U.S. rig contractor by market value, said this week it’s reasonable to expect the rig tally to increase by 100 to 200 rigs this year thanks to the improving outlook for oil prices.
“Oil prices have probably exceeded everyone’s expectations this early in 2018,” Helmerich Chief Executive Officer John Lindsay told analysts and investors on a Jan. 25 conference call. “If we’re looking at a $60 or $65 oil price going forward, I think we can logically expect to see customers pick some rigs up.”
West Texas Intermediate crude, the U.S. benchmark, has risen more than 4 percent this week and is on course for its best January performance in 12 years.
And the upward trend of oil prices may continue throughout the year—good news for American producers.
The United States’ production of crude is now just shy of Saudi Arabia’s, and we has the potential to overtake them within the next decade.
This would be good for America, and the world as a whole. Hopefully the Trump administration will continue to open up new land for exploration, just as they did recently in Alaska.
This is welcome news, as more energy production makes our economy more efficient and robust.