As per Baker Hughes Data, the US Rig Count is up by 9 for the Week Ending November 11, 2022

The United States rig count is up by 9 for the week ending November 11, 2022, as per Baker Hughes’s data. According to fresh information from Baker Hughes released on Friday, there was an addition of 9 more active drilling rigs overall in the United States this week. Since the conclusion of July, it represents the biggest weekly increase.

This week, there were 779 total rigs, 223 more than there were at the same time in 2021 and 296 more than there were at the start of 2019, before the pandemic. The total number of oil rigs in the US increased this week by 9, to 622.  Though the number of gas rigs continued to be the same at 155 as well as the count for other rigs also remained constant at 2.

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This week, the number of rigs in the Permian Basin increased by 4 to 350. The Eagle's rigs increased by 1 to 71. For the week ending November 4, Primary Vision's Frac Spread Count, an estimation of the number of crews finishing incomplete wells, a more cost-effective use of funds than drilling new wells, declined for the second consecutive week. Currently, there are 290 frac spreads, down 3 from the preceding week. This contrasts with 291 last month and 266 last year.

According to the most recent weekly EIA estimates, crude oil output in the United States increased in the week of November 4 to 12.1 million BPD. The U.S. production levels are up 400,000 BPD up till now in the current year compared to a year ago with just 600,000 BPD increase.

The WTT benchmark, at 12:52 p.m. ET, was trading up USD 1.91 per barrel (+2.21%) during the day at USD 88.38 per barrel, and up over USD 2.50 per barrel from this time last week . The price of the Brent benchmark was trading up USD 1.76 on the day, at USD 95.43 per barrel (1.88%), and up about USD 1.50 per barrel from last Friday. Minutes after the data was released, WTI was trading at USD 88.12.

Although the rig count rose in the majority of the months over the previous two years, there has been no weekly growth since the COVID-19 pandemic outbreak began in March 2020. This made it easier to maintain oil production below the record levels that was witnessed before pandemic began because many businesses prioritise paying back to investors and reducing debt above increasing output.

Days after the top executives of oil producers warned of incessant price increases and supply chain limitations, the U.S. Energy Information Administration (EIA) reduced its prediction for the growth of crude output next year by 21%.

Cowen & Co. revealed that the independent exploration and production (E&P) companies that it keeps the records for, intend to increase their expenditure by approximately 40% in 2022 compared to 2021 (up from 38% last week), after raising the spending by roughly 4% in 2021 compared to 2020. That comes after a decrease in capital spending of around 48 percent in 2020 and 12 percent in 2019.

However, some market experts have pointed out that even when energy companies raise their capital spending, it is not always to improve production but rather to pay for more expensive pipelines and other equipment as well as growing labour expenses as a result of skyrocketing inflation and supply disruptions.

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As per Procurement Resource, in its recent data Baker Hughes revealed that the number of drilling rigs in the United States increased by 9 for the week ending November 11, 2022. It represents the biggest weekly increase since the end of July.