U.S. Rig Count Rises by 10 Even as Oil Prices Slide Sharply

The Permian Basin added two rigs this week, bringing the regional total to 258, according to Baker Hughes’ latest count released Friday. That’s down from 270 rigs operating in the same region a year ago, signaling a net pullback even as weekly activity ticked higher.

Nationally, the combined oil and gas rig count rose by 10 from the previous week to 573, compared with 547 rigs a year earlier. Of those, 440 were targeting oil — up seven from the prior week — while 125 were drilling for natural gas, a gain of three. The number of miscellaneous rigs held steady at eight.

The weekly increase runs counter to a sharp decline in crude prices. The regional benchmark Plains-West Texas Intermediate Posting closed Friday at $65.71 per barrel, down $7.37 from the prior Thursday. National benchmark West Texas Intermediate crude ended at $69.23 per barrel, also off $7.37 for the week.

Industry observers note that the divergence between rising rig counts and falling prices could reflect hedging strategies locked in months ago, or producers’ longer-term optimism about demand. Others caution that the price drop — driven by concerns over global demand and rising OPEC+ output — may eventually curb drilling plans.

For context, the U.S. rig count peaked at 4,530 in 1981 and hit a historic low of 244 in August 2020. Current levels remain far below that record high, but the steady upward creep over the past year signals a cautious recovery in domestic drilling activity.

First reported by the Odessa American.