U.S. Drilling Activity Slips Following Price Slump

The total number of total active drilling rigs in the United States fell by 3 this week, according to new data from Baker Hughes published on Friday.

The total rig count fell to 755 this week-82 rigs higher than the rig count this time in 2022 and 320 rigs lower than the rig count at the beginning of 2019, prior to the pandemic.

Oil rigs in the United States decreased by 1 this week, to 592. Gas rigs slipped 2 to 160. Miscellaneous rigs stayed the same.

The rig count in the Permian Basin fell by 1, partially offsetting last week's 3-rig increase. Rigs in the Eagle Ford stayed the same.

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, stayed the same for week ending March 24, at 290. This is 18 rigs more than a month ago, and 20 more than a year ago.

Crude oil production in the United States slipped 100,000 bpd in the week ending March 24, back to 12.2 million bpd, according to the latest weekly EIA estimates. U.S. production levels are up 500,000 bpd versus a year ago.

At 1:00 p.m. ET, the WTI benchmark was trading up $1.16 (+1.5%) on the day at $75.53, up nearly $7 per barrel from this time last week as fears subsided over a possible bank collapse contagion.

The Brent benchmark was trading up $0.44 (+0.56%) at $79.71 per barrel on the day, but up more than $5 per barrel from this time last Friday.

WTI was trading at $75.54 minutes after the data release, up 1.57% on the day.

By Julianne Geiger for Oilprice.com

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