U.S. Energy Rigs Gain for Second Week, Baker Hughes Says

Oil and gas rigs in the U.S. rose for a second week, increasing by two to 1,759, according to Baker Hughes Inc. (BHI)

Oil rigs were down four at 1,391, gas rigs advanced by seven to 362 and miscellaneous rigs slipped one to six, the Houston-based field services company said on its website. Gas rigs reached an 11-week high.

The total count was unchanged in the second quarter after five consecutive declines, and June was the most active month for U.S. land drilling permits in more than a year, suggesting a rebound in activity, according to Barclays Plc. (BARC)

Oil and gas wells increased about 10 percent in the first quarter and probably rose again in the second, “suggesting that rig count moves are severely lagging well count improvements and overall increases in industry capacity,” James West, an analyst for the Barclays investment-banking unit in New York, said in the note July 8.

Natural gas for August delivery rose 3 cents to $3.643 per million British thermal units at 1:13 p.m. on the New York Mercantile Exchange, up 27 percent from a year ago.

U.S. gas stockpiles gained 82 billion cubic feet in the week ended July 5 to 2.687 trillion, above the five-year average injection for the week of 74 billion, the Energy Information Administration, the Energy Department’s statistical arm, said yesterday. Supplies were 14 percent below year-earlier levels.

U.S. oil output climbed 1.8 percent to 7.4 million barrels a day last week, the most since January 1992, EIA data show. Stockpiles fell 2.6 percent to 373.9 million barrels.

Crude for August delivery rose 80 cents, or 0.8 percent, to $105.71 a barrel today on the Nymex, up 23 percent in the past year.

To contact the reporter on this story: Lynn Doan in San Francisco at ldoan6@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

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