The number of drilling in the shale deposits in the United States continued to rise last week, showing the highest rate of growth since last summer, Bloomberg reports, citing data from Baker Hughes Inc., published on Friday, July 8.
According to Baker Hughes Inc., the number of oil rigs increased by 10 units, up 351 this week. Since the beginning of June their number increased to 25, however, in comparison with the beginning of last year, the rig count is now below more than 1000 pieces.
However, as noted by Bloomberg, analysts are not afraid of possible overproduction when you start a new drill. “The steadily declining volume of oil production in the US continues to underpin our view that the global market will come from a massive oversupply to a balanced overall position in the second half of the year”, — quotes Bloomberg the statement Mike Wittner, head of research of the oil market at Societe Generale SA.
The commissioning of new drilling rigs is still not enough to overcome the decline in production in the United States, said James Williams of WTRG. “There is no threat of overproduction. There is a danger that production will decline so fast,” he explained to Bloomberg.
Oil production in the U.S. is now at its lowest level in more than two years after drillers from North Dakota to Texas, has cut costs to withstand the falling prices. Production decreased by 194 thousand barrels a day to 8.43 million in the week according to the energy information Administration on July 1.