U.S. Oil, Gas Drilling Activity Sees Further Declines

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 fell by 4 to 590 this week, compared to 687 rigs this same time last year.

The number of oil rigs fell by 4 again this week, after falling by 4 in the week prior. Oil rigs now stand at 488--down by 64 compared to this time last year. The number of gas rigs stayed the same this week at 98, a loss of 32 active gas rigs from this time last year. Miscellaneous rigs stayed the same at 4.

Meanwhile, U.S. crude oil production broke its 12-week 13.1 million bpd streak for week ending June 07, rising by 100,000 bpd to an average of 13.2 million bpd.  Current weekly production in the United States, according to the EIA, is now down down 100,000 bpd from the all-time high of 13.3 million bpd.

Primary Vision’s Frac Spread Count, an estimate of the number of crews completing wells that are unfinished, fell for the third week in a row—by 6—in the week ending June 7. The frac spread count now stands at 247, the lowest point since January.

Drilling activity in the Permian slipped by 1 this week to 309, after seeing no change in the week prior. The count in the Eagle Ford stayed the same this week, holding at 51 after seeing no change in the week prior.

Oil prices were trading slightly down on Friday.  At 11:51 a.m. ET, the WTI benchmark was trading down $0.26 (-0.33%) on the day at $78.38—about $3 above last Friday’s price.

The Brent benchmark was trading down $0.18 (-0.22%) at $82.57, roughly $2.50 per barrel above week-ago levels.

By Julianne Geiger for Oilprice.com

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