Houston-based oilfield services provider Baker Hughes (BHI) said U.S. oil and gas producers brought seven rigs online overall in the past week, bringing the company's total count up to 908 units.
Two oil rigs were added over the course of the week, while five more natural gas rigs came online and miscellaneous rigs remained level, Baker Hughes said. Meanwhile, the company's U.S. offshore count is flat this week after climbing by two in each of the previous three frames. The offshore count, now at 23 overall, is down one rig year over year.
In total, the U.S. land rig count is now up 504 rigs from a year ago when it stood at 404, Baker Hughes data indicates. Oil rigs are up 406 in the past year, while natural gas rigs have risen by 98 and miscellaneous rigs are flat.
The news marks the 19th consecutive weekly build in the rig count and comes one day after the Organization of the Petroleum Exporting Countries, or OPEC, agreed to extend a 1.8 million barrel per day production cut for nine months through March 2018.
Oil prices had gained about 7% in the three weeks leading up to OPEC's May 25 meeting in Vienna and then fell after news of the agreement broke, leading some analysts to believe the commodity market had already priced in an even more aggressive cut.
Nevertheless, U.S. producers are likely to be further emboldened by OPEC's decision to limit production alongside several non-OPEC members, including Russia, as the effort should help to correct the global supply-demand imbalance.
Seaport Global Securities analysts warned in a Friday research note, however, that if U.S. shale's resurgence remains unchecked, it could threaten to throw worldwide supply-demand balance out of sync as early as 2018.
Indeed, U.S. producers have not let off the gas so far in 2017 with oil prices hovering in a range around $50 per barrel.
The Permian Basin of west Texas and New Mexico has seen the predominant boost in U.S. activity. The rig count there, now at 362, has nearly tripled in the past year, according to Baker Hughes data.