Slight decline in rig court during the past week

Despite the past week’s slight decline in total rig count, the number of rigs operating over this time last year was up 172 rigs or 61%.

According to Enverus, the U.S. rig count rose by eight in the last week to 521. The count is down 2% on the month, but up 71% year-over-year.

The largest increases by basin occurred in the Permian Basin, where eight rigs were added. The Williston Basin added five rigs and reached a 2021 high of 19. Since May 14, Oklahoma has added six rigs for a total of 28 operating rigs as of June 4. The Texas-Eagle Ford/Austin Chalk RRC Dist. 1 lost four rigs since May 14 (from 17 to 13) but Texas-Eagle Ford/Austin Chalk Dist. 2 gained three rigs (from 12 to 15).

Oil rigs operating in the U.S. were steady at 359 this week, after rising for four weeks in a row. Gas rigs fell one to 97, dropping for a fourth straight week in the longest losing streak since May 2020.

Since the middle of February, the rate at which rigs have been added and total number employed have both started to lag behind previous recoveries. A Goldman Sachs forecast for the rig count indicated that it would reach between 490 and 510 rigs by year-end 2021, keeping U.S. production flat.

WTI crude futures in the U.S. were trading above $69/bbl on June 4, putting the contract on track for its highest close since October 2018.

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