In the third quarter, drillers added oil and gas rigs for an eighth quarter in a row but the addition of 12 rigs was the smallest increase since September 2020.
U.S. oil rigs rose three to 602 this week, while gas rigs fell two to 160. The total rig count fell in August and was on track to fall again in September after rising for a record 24 months in a row.
The biggest increase in rigs was in the Permian Basin in Texas and New Mexico, the biggest U.S. oil field, which rose by three to 343 this week, the most since August.
Oil services company Baker Hughes reported that the U.S. oil and gas rig count fell for the fifth straight week the week of Sept. 5, following recent forecasts of disappointing oil output gains from EOG Resources and Pioneer Resources executives.
Land drill rig day rates have increased in a number of regions due to an increase in drilling demand combined with higher commodity pricing. In the U.S., in particular, day rates have increase by 25% in 2022, according to Westwood’s latest analysis.
In August, the combined oil and gas count in the U.S. was down two rigs after rising for a record 24 months in a row, according to Baker Hughes in its closely followed report.
The U.S. oil and gas rig count fell by one to 762 in the week to Aug. 19, Baker Hughes said. That was the first time drillers cut the rig count for three consecutive weeks since July 2020.
OPEC and the International Energy Agency (IEA) conflicting oil demand views, with OPEC cutting its world oil demand forecast and the IEA raising its demand growth forecast.
The week of Aug. 8, 2022 was the first time the U.S. oil and gas rig count fell for two consecutive weeks since August 2020.