Oil exploration on the rise in US

The US EIA reports that:

“the number of rigs drilling for oil in the United States has recovered since the low levels seen in June 2009. The rig count surpassed its previous post-1993 peak of November 2008 on February 1, 2010 (see Figure) and was 5 percent (24 rigs) higher as of March 12. Half of the overall increase in rig counts since June 2009 has been in the Permian Basin of West Texas, where rigs drill primarily conventional vertical wells. Just under one-fifth of the increase has occurred in the Williston Basin, straddling Montana and North Dakota, where horizontal drilling programs have rapidly increased production from the Bakken Shale.”

Clearly sustained higher oil prices are influencing drilling activity.

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