The total number of active drilling rigs for oil and gas in the United States fell this week, according to new data that Baker Hughes published on Friday.
The total rig count rose by 4 to 623 this week, compared to 762 rigs this same time last year.
The number of oil rigs stayed the same this week after no movement in the week prior, staying at 499--down by 110 compared to this time last year. The number of gas rigs rose by 4 this week to 121, a loss of 29 active gas rigs from this time last year. Miscellaneous rigs stayed at 3.
Meanwhile, U.S. crude oil production rose by 300,000 bpd to an average 13.3 million bpd in the week ending February 2. Production has increased for two weeks in a row, after seeing a 1 million bpd fall as a cold snap took production offline throughout much of the United States.
Production rates in the U.S. are now back at the previous record.
Primary Vision’s Frac Spread Count, an estimate of the number of crews completing wells that are unfinished, rose in the week ending February 2. Completions rose by 8 to 250 for the week.
The Permian saw 2 rigs added after rising by 1 the week before. The count in the Eagle Ford stayed the same this week after falling by 2 rigs in the week prior.
Oil prices were trading slightly up on Friday morning. At 11:53 a.m. ET, the WTI benchmark was trading up $0.11 (+0.14%) on the day at $76.33, up $4 week over week.
The Brent benchmark was trading up $0.07 (+0.09%) at $81.70, an increase of $4.40 per barrel from a week ago.
By Julianne Geiger for Oilprice.com
ADVERTISEMENT
More Top Reads From Oilprice.com:
- Iran's Calculated Approach to Regional Tensions
- Diesel Prices Set to Surge in 2024
- From Coal to Clean: The Economic Challenge of Shifting Energy Paradigms
If this is the case, then shale oil drillers could slash the number of oil rigs they are operating by another 100 rigs saving a considerable operational capital and still be assured that the EIA will come up with still higher figures.
What would the veterans of the shale oil revolution think of the EISA figures having demanded three years ago that the EIA should provide transparency and more realistic production figures?
Dr Mamdouh G Salameh
International Oil Economist
Global Energy Expert