The US oil industry is making a surprising recovery, but is it sustainable? A volatile week for oil rig counts has just passed, leaving experts and investors alike intrigued. Julianne Geiger's report reveals a fascinating turnaround in US oil and gas drilling activity.
After a significant drop last week, the latest Baker Hughes data shows a rebound in the total number of active drilling rigs. The count increased by 5 to reach 549 this week, though it's still 40 rigs short of last year's count at this time. But here's the twist: the breakdown of oil and gas rigs tells a nuanced story.
Oil rigs saw a boost of 6, now standing at 413, despite a loss of 12 rigs the week before. Interestingly, this is 69 fewer than the count a year ago. Meanwhile, gas rigs decreased by 1 to 129, which is a notable 27 more than the previous year. The miscellaneous rig count remained unchanged at 7.
The EIA's data adds another layer of complexity. US crude oil production for the week ending November 28 showed a slight increase to 13.815 million barrels per day (bpd), just shy of the all-time high by 47,000 bpd. But the Frac Spread Count, an indicator of well completion crews, fell to 173 in the week ending November 26, down from 201 at the start of the year.
Regional variations are also worth noting. The Permian Basin maintained its rig count at 251, 53 less than a year ago. In contrast, the Eagle Ford region saw a decrease of 1 rig, settling at 38, which is 10 less than the previous year.
As of 12:49 p.m. ET, the WTI benchmark was up by $0.59 to $60.26, while the Brent benchmark gained $0.66 per barrel to reach $63.92, a significant weekly increase.
This recovery in oil rig counts raises questions about the industry's future. Is this a temporary bounce or a sign of long-term growth? What factors are influencing these fluctuations? Share your insights and opinions in the comments below, especially if you have a unique perspective on the oil market's latest moves.
