Oil, gas rigs added for a fourth week in a row

The number of rigs running in the U.S. is up 5% in the last month and 99% in the last year, according to Enverus, although drilling activity is still 32% below the 2020 high.

The largest increases to the rig count in the last week were in the Permian Basin and Anadarko Basin.

Permian Basin activity has stayed within a 19-rig range since the beginning of June. The high count was due to increases by existing operators rather than previously inactive players entering the field. The most active drillers are Pioneer Natural Resources Co., Devon Energy Corp., Mewbourne Oil Co. and Endeavor Energy Resources LP.

In the Anadarko Basin, the rig count has recovered to levels last seen in January 2020 and is eight rigs off the 2020 high. The most active operators are Continental Resources; Citizen Energy; Camino Natural Resources, Devon; Mewbourne and Ovintiv (two).

WTI crude futures in the U.S. were on track to end the week near $72/bbl July 23, little changed from last week, when it hit its highest October 2018.

Baker Hughes anticipates that companies will add around 50 rigs in North America through the end of the year, with private companies picking up activity at current price levels. Energy services firms are benefiting from a resumption of drilling driven by rising crude prices, and Schlumberger and Halliburton this week delivered a bullish outlook for the oil industry recovery.

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