US Oil and Gas Rig Count Rises to 588 as WTI Trades Near $85 Per Barrel
Key Takeaways
- •The total US rig count reached 588, marking an increase of 48 rigs compared to the same period a year ago.
- •US crude oil production averaged 13.796 million barrels per day for the week ending July 24, down slightly from the prior week but 482,000 bpd higher than a year ago.
- •The Permian Basin added 2 rigs to reach 260, while the Eagle Ford gained 2 rigs to bring its total to 49.
- •Primary Vision's Frac Spread Count rose by 2 crews to 198, partially recovering from a decline of 4 crews in the previous week.
- •Brent crude traded at $89.95 per barrel and WTI at $84.67 per barrel on Friday, with both benchmarks gaining over 1 percent on the day.
The total number of active oil and gas drilling rigs in the United States increased this week, according to the latest Baker Hughes data published on Friday, bringing the total US rig count to 588 — up 48 from the same period a year ago. The Baker Hughes rig count is widely tracked as a leading indicator of future oil and gas supply, as rigs actively drilling new wells typically precede production by several months.
Active oil rigs rose by 1 to reach 451 during the most recent reporting period, marking a year-over-year increase of 41. The number of natural gas rigs held steady at 127, which is 3 more than at this point last year. Miscellaneous rigs remained unchanged at 10.
According to the latest EIA data, US crude oil production edged slightly lower during the week ending July 24, averaging 13.796 million barrels per day (bpd). That figure represents a marginal decline from 13.798 million bpd in the prior week but remains 482,000 bpd higher than a year ago. The United States is the world's largest crude oil producer, and production levels near 13.8 million bpd represent record territory for the US shale sector.
Primary Vision's Frac Spread Count, which estimates the number of crews engaged in well completion operations, increased by 2 during the week ending July 24, bringing the total to 198 crews. This followed a decline of 4 crews in the previous week. The frac spread count complements the rig count by tracking the completion stage of well development, offering a nearer-term read on production additions since drilled wells require fracturing before they can begin producing.
At the regional level, the Permian Basin saw its active rig count rise by 2 to 260, sitting 1 rig above year-ago levels. The Permian, spanning West Texas and southeast New Mexico, accounts for the majority of US oil output growth in recent years. The Eagle Ford also gained 2 rigs, reaching 49 — a year-over-year increase of 10.
Oil prices moved higher on Friday. Brent crude was trading at $89.95 per barrel, up 1.03% on the day, though down approximately $6 per barrel from the prior week. West Texas Intermediate (WTI) was also trading higher, up 1.29% at $84.67 per barrel. US drilling activity and prices are being shaped in part by OPEC+ production policy decisions, ongoing geopolitical tensions in the Middle East, and seasonal demand patterns heading into the second half of the year.
By Julianne Geiger for Oilprice.com.