U.S. rig count slips by five as crude prices climb; Permian Basin adds two

U.S. crude prices climbed sharply this week, while the country's active drilling fleet pulled back slightly — a mix that signals operators are keeping a cautious hand even as commodity headlines turn bullish.

Baker Hughes reported the national oil and gas rig count at 588, down five from the previous week. But the Permian Basin, the country's most productive shale region, bucked the trend, adding two rigs to reach 267. At the same time last year, the basin counted 255 active rigs.

The national total remains well below the historic peak of 4,530 rigs reached in 1981, and the 2020 trough of 244 underscores how much the industry has changed. Today's drilling programs are more about efficiency and returns than raw growth, and the latest numbers reflect that discipline.

Of the active rigs nationwide, 452 were targeting oil, down three from the previous week. Gas-directed activity slipped by one to 127, and miscellaneous rigs fell by one to nine.

On the pricing side, the regional benchmark Plains West Texas Intermediate Posting closed Friday at $83.54 a barrel, up $4.66 from a week earlier. National benchmark West Texas Intermediate crude settled at $87.06, also $4.66 higher on the week.

With WTI now pushing toward the upper end of its recent range, the next few weekly counts will be closely watched for signs that higher prices are finally translating into more drilling. So far, producers have shown little appetite for a spending spree, keeping budgets tight and prioritizing shareholder returns.

This article first appeared on Odessa American.