Wednesday, March 17, 2010

Whole Lot a Drillin' Goin' On

OPEC Expands Oil Rig Drilling the Most Since 2007 (Update1)  March 15 (Bloomberg) --
OPEC is increasing oil drilling at the fastest rate in 2 1/2 years, even as production exceeds its quotas by the equivalent of a supertanker of crude a day and delegates prepare to pledge no increase in output.

The 12-nation group boosted its number of oil and gas rigs by 8.4 percent in January and February, the biggest two-month gain since June 2007, data from Baker Hughes Inc. show. OPEC members excluding Iraq pumped 26.8 million barrels a day last month, 1.9 million more than targeted, data compiled by Bloomberg show. Shipments will rise again this month, according to tanker-tracker Oil Movements."

Hmm, check out Worldwide Current and Historical International Rig Count at Baker Hughes  .

The way I read it, at the current rate, rigs will have exceeded the old high of 3557, made in Sept. 2008, by this summer.

And the DOE's "This Week In Petroleum", weighs in on domestic activity with :
 Oil Rig Counts Increase
Baker Hughes reported that the number of rigs drilling for oil in the United States has recovered since the low levels seen in June 2009. The rig count surpassed its previous post-1993 peak of November 2008 on February 1, 2010 (see Figure) and was 5 percent (24 rigs) higher as of March 12. Half of the overall increase in rig counts since June 2009 has been in the Permian Basin of West Texas, where rigs drill primarily conventional vertical wells. Just under one-fifth of the increase has occurred in the Williston Basin, straddling Montana and North Dakota, where horizontal drilling programs have rapidly increased production from the Bakken Shale. (These two areas also accounted for about two-thirds of the drilling during the previous peak in 2008.)

Meanwhile
 click to sharpen

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