American Oil Rigs Continue Their Steady Decline
Julianne Geiger

The total number of active drilling rigs for oil and gas in the United States fell again this week, according to new data that Baker Hughes published on Wednesday, after falling in the week prior.

The total rig count fell by a single rig for the third week in a row, landing at 582 total rigs, according to Baker Hughes, 43 years fewer than a year ago. 

The number of oil rigs fell by two this week to 477—down by 28 rigs compared to this time last year. The number of gas rigs rose by one rig, landing at 100, but down 16 rigs this year. Miscellaneous rigs stayed the same, at five.

Meanwhile, U.S. crude oil inventory experienced a draw of 1.8 million barrels for the week to November 22, according to Energy Information Administration (EIA) data shows, following another draw of 5.9 million barrels for the week prior. 

Primary Vision’s Frac Spread Count, an estimate of the number of crews completing wells that are unfinished, fell again this week, from 221 to 215—down 21 from the beginning of the year.

Drilling activity in the Permian remained unchanged, at 303 rigs, which is 11 fewer than this same time last year. The count in the Eagle Ford also stayed the same at 48. Rigs in the Eagle Ford are now just 2 below where they were this time last year.

Oil prices were trading flat on Thursday, amid the Thanksgiving holiday. At 16.23 p.m. ET, the WTI benchmark was trading up slightly at $68.88, for a gain of 0.23% on the day. The Brent benchmark was trading up 0.62% at $73.28. A shaky ceasefire between Israel and Hezbollah in Lebanon pushed prices down earlier in the week, with some of those losses being recovered by the EIA’s inventory report, but otherwise, oil continued to largely trade flat this week. 

By Julianne Geiger for Oilprice.com

 

 

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.

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