Active drilling rigs in the U.S. jumped by 13 to 663 according to the latest Baker Hughes weekly survey, resuming its recent pattern of steady gains after a one-week breather.
Rigs targeting crude oil in the U.S. increased by 8 to 527, while gas rigs gained 5 to 135; rigs targeting oil in the Permian Basin jumped by 6 to 316, while the Eagle Ford shale added 2 to 47.
The total rig count had climbed for eight consecutive weeks before last week’s pause; oil rigs had increased for six straight weeks heading into last week and have reached their highest since April 2020; gas rigs are at their best level since October 2019.
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Bank of America’s commodities team has forecast 900K bbl/day of lower-48 supply additions on ~100 horizontal rig additions throughout 2022; the oil rig count is now up 37 in the first nine weeks of this year.
