US oil companies increase rig count despite uncertain prices

U.S. Oil and Gas Rig Count Sees Modest Increase

According to the latest figures released by Baker Hughes on Friday, the number of operational oil and gas drilling rigs in the United States climbed by five this week, bringing the nationwide total to 551. Despite this uptick, the current count remains 35 rigs lower than the same period last year.

Breakdown of Rig Activity

• The tally of active oil rigs edged up by one, reaching 412. This figure is 68 fewer than what was reported a year ago.
• Gas rigs experienced a more significant rise, increasing by five to a total of 130—30 more than last year’s count.
• The number of miscellaneous rigs decreased by one, now standing at nine.

Production and Completion Updates

Recent data from the EIA indicates that U.S. crude oil output dropped again for the week ending January 30, falling by 481,000 barrels per day to an average of 13.215 million barrels per day. This is 647,000 barrels per day below the record high.

Primary Vision’s Frac Spread Count, which estimates the number of crews completing wells, saw a sharp decline during the same week, dropping by 15 to reach 148—the lowest level observed in five years.

Regional Rig Count Changes

• In the Permian Basin, active rigs fell by one to 241, which is 62 fewer than last year.
• The Eagle Ford region maintained its rig count at 40, down by eight compared to the previous year.

Oil Price Movements

Prior to the release of these figures, oil prices were on the rise. Brent crude futures were trading at $68.72 per barrel, up 1.73%. Meanwhile, WTI crude increased by $1.05 on the day to $64.34 per barrel, though this was a decrease compared to the previous week.

By Julianne Geiger, Oilprice.com