Recent Increase in US Oil and Gas Drilling Activity
The latest data from Baker Hughes reveals a slight uptick in active drilling rigs in the United States, with a gain of 6 rigs this week. This brings the total number of rigs added this year to 7, reaching a total of 629 rigs, compared to 754 rigs at the same time last year.
The number of oil rigs increased by 6 this week, following a decrease of 2 in the previous week. Currently, there are 510 oil rigs in operation, which is 79 rigs less than the same period last year. Gas rigs also saw a slight increase of 1 rig, totaling 116 active gas rigs, down by 46 from last year. Miscellaneous rigs remained steady at 3.
Despite the rise in rig count, US crude oil production decreased to an average of 13.1 million barrels per day in the week ending March 8, dropping from the record high of 13.3 million barrels per day.
Primary Vision’s Frac Spread Count, indicating the number of crews working on unfinished wells, declined in the week ending March 8, dropping by 9 to 263. This regression brought completions back to February levels after seven consecutive weeks of increases.
In regional drilling updates, the Permian Basin saw a 3-rig increase following a decrease of 2 rigs the week before. Additionally, the Eagle Ford region added 3 rigs this week after a period of no change in the previous two weeks.
Oil prices experienced a slight dip on Friday, with the WTI benchmark trading down $0.11 (-0.14%) at $81.15, although still showing a $3 increase per barrel compared to the previous week. The Brent benchmark also dropped by $0.04 (-0.05%) to $85.38, up approximately $3 per barrel from a week ago.
Overall, the recent increase in drilling activity coupled with fluctuations in oil production and prices indicates a dynamic period in the US oil and gas sector.
Written by Julianne Geiger for Oilprice.com
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