US active oil rig count falls for third time in five weeks

Baku. 7 August. REPORT.AZ/ The total number of oil and gas wells operating in the United States (US) has dropped by 4 units or by 0.42% from July 29 to August 4, making up 954 units.

Report informs citing the US Baker Hughes.

Notably, the number of active oil wells in the US fell for third time in five weeks, once remained stable and once increased after23 weeks of consistent rise. Nevertheless, oil production in the US increased by 20,000 bpd or 0.21% and amounted to 9.43 mln bpd.

During last reporting week, the number of active oil wells dropped by 1 or (0.14%) up to 765 units, gas wells dropped by 3 (1.56%) up to 189, while the number of mixed operating wells has not changed and remained 0.

Compared to the same period 2016, the number of oil wells in US increased by 384 or (100,8%), while the number of gas wells up by 108 (133,3%) and the overall number of oil and gas wells increased by 490 units (105,6%).

Notably, as of May 25, the number of oil wells in operation in the US was 316 units, that is the minimum limit for last 7 years. Currently, the number of active oil wells is more by 2,42 times than the minimum limit. The figure reached a record level in October 2014 with 1 609 units. Currently, the number of wells by 52,4% lower than the record limit.

Analytical Group of Report believe, the price of oil is expected to fluctuate in 45-55 USD/barrel range within the next 4-6 months. “Oil price around 45 USD/barrel may delay the increase in the number of active oil wells in the US. Oil price at $ 55 per barrel can speed up the number of wells".