Oil Rig Count Rises As Brent Prices Flirt With $70

Baker Hughes reported on Friday that the number of oil and gas rigs in the United States increased by 2 again this week, bringing the total rig count to 457—a more than 100-rig gain since the start of the year.

In the week prior, the U.S. oil and gas rig count increased by 2. But the longer trend in rig count additions bodes well for the U.S. oil industry, as drillers pick up the pace, adding 106 rigs so far this year, more than half of which were added in Texas.

The total number of active oil and gas drilling rigs in the U.S. is now 156 more than this time last year.

The oil rig count increased by 3 this week, bringing the total oil rig count to 359. The number of gas rigs decreased by 1 to 98. The number of miscellaneous rigs stayed the same.

The EIA’s estimate for oil production in the United States for the week ending May 21—the last available data—held steady this week at an average of 11 million barrels per day. The EIA estimates that U.S. oil production will reach a modest 11.04 million bpd this year, after falling from the 13.1 million bpd peak production reached in February 2020, before the pandemic crushed oil demand.

Canada’s overall rig count increased this week by 4. Oil and gas rigs in Canada now sit at 62 active rigs, up 42 on the year. 

The rig count in the Permian basin increased by 2 this week. At 233 rigs, the Permian’s total rig count is now 85 rigs above what it was this time last year, but hundreds below the two years ago level.

The Frac Spread Count provided by Primary Vision shows that fracking crews increased last week to 223.  The frac spread count estimates the number of completion crews finishing off previously drilled wells. This frac count is up 90 so far this year.

At 12:08 a.m. EDT, WTI was trading up $.04 per barrel on the day at $66.89—up $1.80 per barrel on the week.

The Brent benchmark was trading up $0.32 per barrel on the day, at $69.78 per barrel.

By Julianne Geiger for Oilprice.com

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