According to the most recent data from Baker Hughes, for the week ending Dec. 2, 2016, the number of US rotary rigs drilling for oil increased by three, to 477. At current, there are 68 fewer rigs targeting oil than there were during the same reporting period in 2015. The current oil rig count is down by 1,098 from levels recorded on December 5, 2014.
Rigs directed toward natural gas were up 1 at 119. The number of rigs drilling for gas is 73 lower than last year's level of 192. The current gas rig count is down by 225 from levels recorded on December 5, 2014.
In terms of current oil barrel prices, US news outlets have reported growing global concern that the two-year-long oversupply glut could extend into 2017.
And while pricing for US import OCTG casing from Taiwan in the US domestic market continues to trend at approximately $34.00 cwt. ($750/mt or $680/nt), DDP loaded truck in US Gulf coast ports, interest in booking speculative tons remains limited. “If something is arriving at the docks, it’s already earmarked for a customer,” one source said.