The Baker Hughes North American rig count is up 15 rigs in the November 24 week to 1,138. The U.S. rig count is up 8 rigs at 923 and is up 330 rigs from last year at this time. The Canadian count is up 7 rigs from last week to 215 and compared to last year is up 41 rigs.
For the U.S. count, rigs classified as drilling for oil are up 9 rigs to 747 and while gas rigs are down 1 at 176. For the Canadian count, oil rigs are down 2 at 107 but gas rigs are up 9 at 108.
The third consecutive weekly increase after a 5-week long decline indicates that North American exploration and development companies are responding to the recent climb in oil prices to the highest levels in over 2 years, with WTI reaching $58 per barrel. Since breakeven rates for many U.S. shale oil exploration and development companies are below $45 per barrel, activity is likely to heat up further if current price levels are maintained.