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.
Even though the total rig count in the U.S. has climbed for a record 24 months through July, weekly increases have mostly been in the single digits and oil production is only forecast to recover to pre-pandemic record levels next year.
In July, the oil rig count in the U.S. rose 11, increasing for a record 23rd month in a row, while the gas count was unchanged after rising for 10 straight months, according to Baker Hughes.
The U.S. oil and gas rig rose two to 758 from the week prior, marking an increase in rig counts for the third week in a row.
Even though the total rig count was up for a record 23 months through June, weekly increases have mostly been in the single digits and oil production is still below pre-pandemic record levels.
The oil and gas rig count in the U.S. rose two to 752 in the week to July 8. Baker Hughes said that puts the total rig count up 273, or 57%, over this time last year.
OPEC raised oil output in 2021 but saw the number of active oil wells increase only slightly and the number of new completed wells decline, a factor in surging oil prices in 2022.
U.S. oil rigs rose 10 to 594 this week, their highest since March 2020, while gas rigs gained three to 157, their highest since September 2019. That put the overall oil and gas rig count up for a record 23 months in a row, gaining 26 in June.
Bakken producer Hess Corp. expects to add a fourth rig to its North Dakota operations in July, moving forward from the company's original goal of adding the additional rig in 2023.