U.S. energy companies added oil and natural gas drilling rigs this week for the fourth time in five consecutive weeks, despite high crude prices and the slow recovery of crude production to pre-pandemic levels.
Baker Hughes Co, a closely watched reporter, stated that the oil and gas rig count, which is an indicator of future output, rose by two to 752 in the week to July 8.
Baker Hughes stated that this brings the total number of rigs up to 273, or 57%, compared to last year.
U.S. oil production rose to 597 this week, the highest level since March 2020. Gas rigs remained unchanged at 153.
The total number of rigs has increased for the 23rd consecutive month, with oil prices rising by 39% to $104 per barrel this year after climbing 55% in 2021.
Weekly rig increases have remained in the single digits since many companies are more focused on returning money to investors or paying down debt than increasing output.
According to a government monthly report, U.S. crude oil production fell to 11.6 Million barrels per day (bpd) in April. This is its lowest level since February and far below the record of 12.3M bpd set in 2019.
However, the monthly gross natural gas production rose by 107.3 billion cubic yards per day (bcfd), in April, which was its highest level since December 2021. This compares to the November 2021 record of 108.2 billion cubic feet per day.
