U.S. Oil Rig Count Jumps As Crude Holds At $120

The number of total active drilling rigs in the United States rose by 6 this week, after drilling increases stalled out in the week prior, according to new data from Baker Hughes published on Friday.

The total rig count rose to 733 this week—272 rigs higher than the rig count this time in 2021, but insufficient to ease market fears in the current tight oil market.

Oil rigs in the United States rose by 6 this week to 580. Gas rigs stayed the same, at 151. Miscellaneous rigs also stayed the same at 2.

The rig count in the Permian Basin rose by 3 this week, to 345. Rigs in the Eagle Ford rose by 2, to 68. Oil and gas rigs in the Permian are 109 above where they were this time last year.

While there is more drilling activity in the Permian than this time last year, the increase in activity in U.S. shale has been outpaced by demand. With ESG concerns giving oil and gas companies pause in upping serious long-term investments in oil production and refining, and as companies fear depleting their reserves too quickly, we have failed to see a large and speedy uptick in drilling activity.

Primary Vision’s Frac Spread Count, an estimate of the number of crews completing unfinished wells—a more frugal use of finances than drilling new wells–fell for the second week in a row last week, from 283 to 279 in the week ending June 3.

U.S. crude oil production was unmovable at 11.9 million bpd for the week ending June 3—the same level it’s been at for the three weeks prior,  according to the latest Energy Information Administration.  

At 12:29 a.m. ET, oil prices were trending down on the day. WTI was trading at $119.30—down $2.22 per barrel (-1.83%) on the day, but up roughly $0.60 per barrel on the week. The Brent benchmark traded at $120.70 per barrel, down $2.40 (-1.95%) on the day, but up roughly $1.40 on the week, with Brent barely hanging onto its edge over WTI.

At 1:06 pm ET, WTI was trading at $119.60, while Brent was trading at $121.20 per barrel—both up on the day.

Source:U.S. Oil Rig Count Jumps As Crude Holds At $120 | OilPrice.com