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Sep 06, 2010

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Baker Hughes: US Oil, Gas Rig Count Up 18 To 1,335 This Week

Feb 05, 2010

NEW YORK (Dow Jones)--The number of rigs drilling for oil and gas in the U.S. climbed this week as producers continued to ramp up output amid higher prices.

The number of oil and gas rigs rose to 1,335, up 18 rigs from the previous week, according to data from oil-field services company Baker Hughes Inc. (BHI). The number of gas rigs was 878, an increase of 17 rigs from last week, while the oil rig count was 445, an increase of one rig. The number of miscellaneous rigs was unchanged at 12 rigs.

The number of gas rigs in use peaked at 1,606 in September 2008. Producers reduced natural-gas drilling sharply over the past several months in response to falling prices, but the rig count has stabilized in recent weeks as producers bet on colder winter weather and an economic recovery that would spark demand for the fuel.

Gas prices have more than doubled from September's low near $2.40 a million British thermal units as wintry weather sparks demand for natural gas for heating. Natural gas for March delivery on the New York Mercantile Exchange was recently up 1.5 cents, or 0.28%, at $5.428/MMBtu.

-By Christine Buurma, Dow Jones Newswires; 212-416-2143; christine.buurma@dowjones.com