Rigs on the rise

Drillers are slowly picking up their pace as signs of optimism return to parts of the oil patch

The Permian shale basin in west Texas is driving the US rig count higher as oil drillers eye a return to work on signs the global crude glut is easing and higher prices are here to stay. After a precipitous 20-month decline, the oil-directed rig count appeared to bottom out at 316 in late May—down 80% from 1,600 in September 2014, according to Baker Hughes data. By early August, the oil rig count had rebounded to 381, with 10 straight weeks of additions. Crude prices started to recover from their 2016 lows of less than $30 a barrel in late January and have been on the rise for most of the year. It took the financially stung shale industry around four months to respond to the climbing prices