This week, the United States saw a significant increase in the number of active oil and gas drilling rigs, according to recent data released by Baker Hughes on Friday. This marks a departure from the recent trend of decline.
The overall count of rigs increased by 8, reaching 590 this week, a decrease from the 641 rigs recorded at the same time last year. The number of oil rigs increased by 5, bringing the total to 488, which is 27 less than last year. The gas rig count also increased by 3, totaling 97, a drop of 24 from the previous year. The number of miscellaneous rigs remained unchanged at 5.
In other news, the Energy Information Administration (EIA) reported that U.S. crude oil production remained steady for the week ending September 6. The EIA’s weekly estimates indicate that current U.S. oil production is just shy of its all-time high by 100,000 barrels.
Primary Vision’s Frac Spread Count, which estimates the number of crews working on unfinished wells, continued to decline, dropping from 222 to 220 in the week ending September 6, following a downward trend over the past month.
Drilling activity in the Permian Basin remained constant at 306 rigs this week, which is 16 less than the same period last year. Similarly, the Eagle Ford region’s rig count held steady at 48, one less than a year ago.
On the financial front, oil prices experienced a slight uptick on Friday, following a challenging couple of weeks that saw Brent barrel prices drop by more than $10 without a significant fundamental change to justify the decrease. As of 12:20 p.m. ET, the West Texas Intermediate (WTI) benchmark was trading up by $0.29 (+0.42%) at $69.26, showing a nearly $2 increase week over week. The Brent benchmark was also up by $0.28 (+0.44%) at $72.29, reflecting a roughly $1.50 per barrel increase compared to the previous Friday.