Canadian drillers added more than a dozen rigs this week, helping to push the North American rig count up by 21 to end the week at 542, according to the latest report from Baker Hughes Inc. (NYSE: BHI).
The oil and gas rig counts in Canada each grew by seven to 44 and 50, respectively. The increase boosted the Canadian rig count to 95, which is about half the number of rigs operating about this time last year.
Gains were also seen in the Gulf of Mexico, where three more rigs were operating this week compared to last week.
The report showed the U.S. rig count increased by seven to end the week at 447, compared with 857 a year ago. While the gas rig count inched up by one to 89, the oil rig count rose by six to 357.
Since early June, after crude prices topped the key $50 a barrel level, U.S. oil drillers have added a net 32 oil rigs. That was the biggest increase during a nine-week period since July-August 2015 when drillers added net 35 rigs.
The increase in July-August last year occurred after oil rallied to $60 per barrel (bbl) in May-June 2015. That rally is referred to by some traders as the “false dawn” as it presaged another selloff in the market.
The rig count declined after hitting a peak of 1,609 in October 2014 amid the steepest price rout in a generation. But analysts and producers have said $50/bbl of oil would trigger a return to the well pad.
U.S. crude futures on July 15 were around $46/bbl, up 1% on the week after volatile trade that had pushed prices to two-month lows amid renewed glut worries.
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