US Drilling Stagnates as Crude Output Hits New Highs

While the total rig count remains unchanged from the previous week, sector specifics show minor shifts. Active oil rigs increased by two to 462, offset by a two-rig decline in natural gas operations, which fell to 130. Regional activity remains concentrated in the Permian Basin, where the count held at 272, while the Eagle Ford saw a slight contraction, dropping by one rig to 50.

Efficiency metrics suggest a cooling in well completion efforts. Primary Vision’s Frac Spread Count, which tracks the crews finishing wells, fell for the second consecutive week to 194. This decline stands in contrast to the rapid rise in production, which climbed by roughly 723,000 barrels per day compared to the prior week. Markets reacted to these supply dynamics with price gains, as Brent crude climbed to $117.58 per barrel and WTI reached $104.13, reflecting steady demand despite the plateau in new drilling infrastructure.