US Oil and Gas Rig Count Increases Amid Strong Prices

The United States saw an uptick in its active oil and gas drilling rig count this week, reaching a total of 595. This figure represents an increase of 53 rigs compared to the same period last year, as reported by Baker Hughes data published on Friday via OilPrice.com.

Active oil rigs contributed to this rise, increasing by 2 to a total of 452 during the latest reporting period. This current oil rig count stands 34 rigs higher than the figure from one year ago. Similarly, the number of active gas rigs also rose by 2, reaching 134, which is 16 more than the count at this time last year. Miscellaneous rigs remained constant at 9.

Regional Rig Activity

Within key shale plays, the Permian Basin recorded an increase in its active drilling rigs. The count in the Permian rose by 1 during the reporting period, settling at 269 rigs. This is 15 rigs above its year-ago level. In contrast, the Eagle Ford shale play maintained a steady rig count of 51, which is 9 rigs more than the figure observed at this same time last year.

Production and Market Context

Recent data from the US Energy Information Administration (EIA) indicated a slight weekly decrease in US crude oil production. For the week ending 11th September, average US crude oil production was 13.944 million barrels per day (bpd), a marginal reduction from the previous week's 13.947 million bpd. However, this production level remains 462,000 bpd higher than a year ago.

Primary Vision's Frac Spread Count, an indicator of the number of well completion crews, ended a four-week decline for the week ending 11th September. The count gained 6 crews to reach 184, recovering from its lowest point since May. Oil prices experienced a downturn on Friday, prior to the release of the rig count data. Brent crude was trading at $103.60 per barrel, representing a 1.16% decrease and approximately $1.30 lower than the previous week. West Texas Intermediate (WTI) also saw a decline, trading at $100.67 per barrel, down 1.22%.