Permian Explorers Expand Activity as Drilling Costs Decline - Bloomberg

Permian Explorers Expand Activity as Drilling Costs Decline - Bloomberg:

Oil explorers deployed more rigs for the first time in four weeks as shrinking drilling costs outweighed concern about sliding crude prices.

Working American oil rigs rose by three this week to 800, according to data released Friday by oilfield-services provider Baker Hughes. The Permian Basin and Eagle Ford shale -- two of the nation’s busiest shale fields -- both saw an increase in drilling.

Some U.S. shale drillers need as little as $23 a barrel for their crude to turn a profit and the nationwide average is $50, down 4% in the past year, according to a Federal Reserve Bank of Dallas survey of oil executives. That means explorers have been somewhat insulated from May’s 14% tumble in crude prices.