Oilfield Activity May Be Rebounding
Forbes
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Jesse Bogan, 06.30.09, 08:45 PM EDT
Rig count rises slightly on upturn in oil prices, but natural gas drilling continues to fall.
HOUSTON -- After months of decommissioning drilling rigs to balance out lower energy prices and expensive well service costs, mass amputations appear to be over in the oilfield due to a rebound in prices.
However, the natural gas sector continues to drown in oversupply.
The national oil and gas rig count has been slashed in half since last summer's highs. But since June 5, the number of oil rigs in production has climbed from 179 to 219, according to a weekly count by Baker Hughes, mainly due to small "checkbook" exploration and production companies getting back into the game.
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