U.S. Weekly Baker Hughes Oil Rig Count Actual 411, Previous 412.

U.S. Weekly Baker Hughes Oil Rig Count Actual 411, Previous 412.

The U.S. oil and gas drilling rig count continued its downward trend this week, according to the latest weekly survey by Baker Hughes. The total number of rigs in operation fell to 538, marking the 15th consecutive decline over the past 17 weeks. This week, oil rigs decreased by 1 to 411, while gas rigs remained unchanged at 122. The miscellaneous rig count also stayed the same, with 5 rigs remaining in this category [1].

The decline in the total rig count is significant, with the current number 47 rigs below the count from this time last year. This represents an 8% decrease year over year. The oil rig count specifically decreased by 1 to 411, while the gas rig count remained unchanged at 122. The miscellaneous rig count also remained unchanged at 5 [1].

In the Permian Basin, the number of rigs targeting crude oil held steady at 253, while the Eagle Ford region saw a decrease of 1 rig to 28. The total number of rigs in the Permian Basin is down 51 year over year, and the Eagle Ford region has seen an 8-rig decline compared to last year [2].

The latest data from the U.S. Energy Information Administration (EIA) shows that weekly U.S. crude oil production rose in the week ending August 15, from 13.327 million barrels per day (bpd) to 13.382 million bpd. Despite this increase in production, the drilling activity has shown a downward trend, with the Primary Vision’s Frac Spread Count, an estimate of the number of crews completing wells, rising by 4 to 167 during the week of August 15 [2].

The WTI benchmark oil price was trading up $0.08 per barrel (+0.13%) at $63.60 on Friday, nearly even with last week’s prices. The Brent benchmark remained flat at $67.67, $1 per barrel above last week’s levels. The market is currently waiting for clarity on the Russia/Ukraine ceasefire possibility, which is influencing oil prices [2].

The decline in the U.S. drilling rig count indicates a cautious approach by oil drillers, who are likely waiting for more clarity on geopolitical and economic conditions before increasing their drilling activities. This trend is expected to continue until the market receives more definitive signals.

References:
[1] https://seekingalpha.com/news/4488497-u-s-drilling-rig-count-ticks-lower-to-resume-string-of-declines-baker-hughes-says
[2] https://oilprice.com/Energy/Energy-General/US-Oil-Drillers-Continue-to-Play-It-Safe.html