Drill Baby Drill Update 3

 

The above figure comes from Baker Huges, which has been keeping track of active oil and gas rigs since 1944. This past week, U.S. Rig counts dropped again, indicating that "drill baby drill," as a policy, is yet to be implemented. Lower prices for oil also reduce incentives for drilling new wells. Oil companies want to make money. 

According to Gasbuddy.com, the median price of a gallon of regular gas in the U.S. is $3.01, which is down slightly from a week ago. 

Update 2 of Drill Baby Drill

 

Following up on the previous post, Baker Hughes publishes updates on on North American rotary oil and gas rigs weekly and International counts are updated once a month. As of this report, the the U.S. has 590 rigs, down 3 from the previous report.  Canadian and International rig counts are also down. Not surprisingly, gasoline prices have gone up.

Gas Buddy publishes updated gasoline prices by state. Checking today's published prices, the median cost by state for a gallon of gasoline is $3.09, up 12 cents (4 percent) form $2.97 in the previous update. For the median price, I'm using the Gas Buddy's published price of a gallon of gasoline in the 25th ranking state in their list of prices by state, ranked from lowest to  highest. 

So far, President Trump's policies have not added to the drill rig count and gasoline prices have gone up, not down. (Above figure is from Baker Hughes).