The U.S. rig count is down by 13% over the last year, according to figures from the Baker Hughes rig count posted on Friday.
The oil and gas rig count, an early indicator of future output, fell by five to 664, according to the last count held on July 28. As compared to totals from last year, there are now 103 fewer rigs than on July 29, 2022.
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According to Baker Hughes, only the Permian region experienced an increase in rigs this week, with the area gaining one rig. The Barnett region eliminated its only rig, Eagle Ford is down two rigs, resulting in a total of 55, Marcellus decreased by one rig, equaling 34, and Utica is down one, ending with 12.
Drilling has slowed since December due to weaker prices and higher costs and as companies opt to divert spending to repaying shareholders. However, officials are encouraging the United States to raise its output to meet current demand.
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“We want to see more supply. … It gets dangerous when the prices are so high,” Energy Secretary Jennifer Granholm said last week in an interview with CNBC. “I think the prudent course is to ensure that transportation is affordable for people, and that of course means making sure that supply is stable.”
Higher gas prices driven by higher oil prices would threaten President Joe Biden’s political prospects. Republicans have blamed high gas prices on the administration’s environmental policies.
