U.S. Rig Count Stalls

The number of total active drilling rigs in the United States fell by 1 again this week, according to new data from Baker Hughes published on Friday. It is the third decline in as many weeks.

The total rig count fell to 762 this week—259 rigs higher than the rig count this time in 2021.

Oil rigs in the United States were unchanged this week at 601. Gas rigs fell by 1, to 159. Miscellaneous rigs stayed the same at 2.

The rig count in the Permian Basin fell by 1 to 345 this week. Rigs in the Eagle Ford stayed the same at 72. Oil and gas rigs in the Permian are 98 above where they were this time last year.

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 to 285 for week ending August 12, compared to 238 a year ago.

Crude oil production in the United States also fell in the week ending August 12. U.S. crude oil production fell by 100,000 bpd to an average 12.1 million bpd, according to the latest weekly EIA estimates. This is up from 11.7 million bpd at the start of the year.

The EIA’s monthly production figures—a more accurate representation of crude oil production—has shown that actual production has been lower than its weekly estimates. The latest data shows that U.S. crude oil production averaged 11.595 million bpd. Weekly EIA data across the four weeks in May averaged 11.8 million bpd, 11.9 million bpd, 11.9 million bpd, and 11.9 million bpd.

At 11:29 a.m. ET, oil prices were trending up on the day as recession fears continue to battle for influence against falling crude and crude product inventories. WTI was trading at $91.09 on the day—down $0.59 per barrel (-0.65%) on the day and roughly $.80 per barrel on the week. The Brent benchmark traded at $96.83 per barrel, down $0.24 (-0.25%) on the day, and about $0.70 per barrel on the week.

At 1:04 pm ET, WTI was trading at $91.49 while Brent was trading at $97.22 per barrel—both up on the day.

Source:U.S. Rig Count Stalls | OilPrice.com