US Rig Count Stable as Oil Activity Rises, Gas Declines

The total number of active drilling rigs for oil and gas in the United States remained at 588 for the latest reporting week, according to new data published by Baker Hughes on Friday. This figure represents an increase of 51 rigs compared to the same period last year.

Active oil rigs increased by two, reaching a total of 449. This is 35 rigs higher than the count observed at this time last year. Conversely, the number of active gas rigs decreased by two, settling at 130. Despite this week's decline, the current gas rig count is 12 higher than the corresponding figure from a year ago. Miscellaneous rigs maintained a consistent count of nine.

Crude Oil Production and Frac Spreads

Weekly US crude oil production rose during the week ending August 28, according to the latest data from the US Energy Information Administration (EIA). Production averaged 13.862 million barrels per day (bpd) during the reporting period, an increase from the previous week's 13.843 million bpd. This also marks a 423,000 bpd increase compared to a year ago.

In contrast to the rig activity, Primary Vision's Frac Spread Count, which estimates the number of crews completing wells, decreased by four in the week ending August 28. The count now stands at 180 crews, following a loss of nine crews in the preceding week.

Regional Rig Activity and Market Context

Regionally, the number of active drilling rigs in the Permian Basin rose by one during the reporting period, reaching 268. This is 14 rigs above year-ago levels. The rig count in the Eagle Ford remained unchanged at 50, which is 11 more than the count from the same time last year.

On Friday, prior to the release of the Baker Hughes data, oil prices were trading lower. Brent crude was at $95.27 per barrel, down 0.26%, while West Texas Intermediate (WTI) was trading at $90.60 per barrel, a decrease of 0.77%, as reported by OilPrice.com.