The number of total active drilling rigs in the United States stayed the same this week, after the 1 rig dip in the week prior, according to new data from Baker Hughes published on Friday.
The total rig count stayed at 727 this week—271 rigs higher than the rig count this time in 2021.
Oil rigs in the United States stayed the same this week at 574. Gas rigs also stayed the same, at 151. Miscellaneous rigs stayed the same at 2.
The rig count in the Permian Basin also saw no changes this week, staying at 342. The Eagle Ford also saw no changes, staying at 66. Oil and gas rigs in the Permian are 110 above where they were this time last year.
Primary Vision’s Frac Spread Count, an estimate of the number of crews completing unfinished wells, fell to 283 to 727 in the week ending May 27—down from 288 in the week prior.
U.S. crude oil production was unmovable at 11.9 million bpd for the week ending May 27, according to the latest Energy Information Administration—an increase of 300,000 bpd rise since the Russian invasion of Ukraine.
At 11:06 a.m. ET, oil prices were trending up on the day. WTI was trading at $118.70—up $1.86 per barrel (+1.59%) on the day and up more than $5 per barrel on the week. The Brent benchmark traded at $119.30 per barrel, up $1.72 (+1.46%) on the day and up $2 on the week, with Brent barely hanging onto its edge over WTI.
At 1:04 pm ET, WTI was trading at $118.90, while Brent was trading at $119.70 per barrel—both up on the day.
By Julianne Geiger for Oilprice.com
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This has far less to do with capital discipline used as an excuse for its inability to raise production and far more to do with the fact that the sweet and lucrative spots in the shale plays have already been used forcing drillers to move to poor and costly-to-produce spots thus adding to production costs and declining production.
All the hype by the US Energy Information Administration (EIA) in cahoots with the IEA and Rystad Energy won’t increase shale oil production this year beyond 200,000-300,000 barrels a day (b/d).
Dr Mamdouh G Salameh
International Oil Economist
Visiting Professor of Energy Economics at ESCP Europe Business School, London