U.S. Drilling Activity Stalls Amid Mixed Signals for Oil and Gas
U.S. drilling activity showed little momentum this week, with the overall rig count inching up by just two, according to the latest figures from oilfield services firm Baker Hughes. The total now stands at 546 active rigs, a notable drop of 36 compared to the same period last year, underscoring a continued cautious approach from producers.
While the number of rigs targeting oil remained flat at 411—down 68 year-on-year—gas-directed rigs increased by three to 125. This shift highlights a strategic pivot by some operators in response to natural gas market dynamics. Meanwhile, weekly U.S. crude oil production fell by 36,000 barrels per day to an average of 13.696 million bpd, data from the Energy Information Administration showed, keeping output below its record high.
The picture from the well-completion side is more nuanced. Primary Vision's Frac Spread Count, which tracks crews finishing wells, rose for a third consecutive week, adding three crews to reach 163. However, this figure still lags 20 crews behind last year's pace, suggesting that while activity is picking up, it has not returned to previous levels.
Regionally, the Permian Basin, the nation's most prolific oil patch, lost two rigs, bringing its count to 242—61 fewer than a year ago. The Eagle Ford shale play held steady at 40 rigs, down six year-on-year.
Oil markets appeared to shrug off the tepid operational data ahead of the release, with prices edging higher. Brent crude futures traded near $70.81 per barrel, while West Texas Intermediate (WTI) was around $65.66.
Industry Voices React
"This is a classic 'wait-and-see' market," says Michael Thorne, a veteran analyst at Hartland Energy Consultants. "Producers are being disciplined with capital. The modest gas rig increase is a tactical move, not a sign of a broad-based recovery."
Sarah Chen, a portfolio manager at Greenrock Capital, offers a more optimistic take: "The sustained rise in completion crews is the leading indicator to watch. It suggests that drilled but uncompleted wells are being brought online, which will support output even if the rig count stagnates."
Striking a sharper tone, David K. Miller, an independent geologist and frequent industry critic, argued: "These numbers expose the fragility of the so-called shale boom. We're burning through our best inventory with declining efficiency. A two-rig increase isn't a recovery—it's a symptom of an industry that can't attract the investment it did when money was cheap. It's a managed decline, not growth."
Reporting by Julianne Geiger for Oilprice.com. Analysis and commentary by staff.