Oil, Gas Drilling Activity In U.S. Sees Largest Single-Week Drop Since Mid-2020

The total number of total active drilling rigs in the United States fell by 17 this week, according to new data from Baker Hughes published Friday, after falling by 7 last week. It is the largest single-week drop in the number of oil and gas rigs in the United States since June 2020.

The total rig count fell to 731 this week—just 17 rigs higher than the rig count this time in 2022—and 344 rigs lower than the rig count at the beginning of 2019, prior to the pandemic.

Oil rigs in the United States fell by 2 this week to 586. Gas rigs fell by 16 to 141. Miscellaneous rigs rose by 1.

The rig count in the Permian Basin fell by 3, while the rig count in the Haynesville fell by 5.

Primary Vision’s Frac Spread Count, an estimate of the number of crews completing unfinished wells—a more frugal use of finances than drilling new wells, fell by 12 for the week ending May 5, to 282. This is 5 fewer finishing crews than a month ago, and 4 more than a year ago. It is the largest single-week drop since December 2021.

Crude oil production levels in the United States saw no changes in the week ending May 5, staying at 12.3 million bpd, according to the latest weekly EIA estimates. U.S. production levels are up 500,000 bpd versus a year ago.

At 12:41 p.m. ET, the WTI benchmark was trading down $0.56 (-0.79%) on the day at $70.3, down less than $1 per barrel from this time last week.

The Brent benchmark was trading down $0.63 (-0.84%) at $74.35 per barrel on the day, also down just shy of $1 per barrel from last Friday.

WTI was trading at $70.26 minutes after the data release, down 0.86% on the day.