Quote:
Originally Posted by wow
The U.S. rotary rig count was up 27 at 1,889 for the week of May 23, 2008 and is 7.3 percent higher than last year.
The number of rotary rigs drilling for oil is up 5 at 386. The number of rigs targeting oil is 99 greater than last year's level of activity. Rigs currently drilling for oil represent 20.4% percent of total drilling activity.
Rigs directed toward natural gas were up 22 at 1,493. The number of rigs currently drilling for gas is 22 greater than last year's level of 1,471.
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But after 7 years, the number of active rigs is still way below the number of active rigs during the Carter administration.
But then again, Carter didn't have secret meetings at the bigging of his adminstration with the oil execs to figure out how to make them the most profitable corporations in the world ever.
And it is clear that the number of rigs isn't increasing in response to the increase in price. I'd say that the increase was to keep market share and thus maximize the oil company profits. But now that the price is really up, no one wants to really expand production because that would drive prices down.
Rig Count: Rotary Rig Count and Workover Rig Count