Weekly U.S. Rig Count Edges Higher as Crude Trades Above $100
The number of active drilling rigs across the United States moved higher this week, according to the latest weekly tally from Baker Hughes (NASDAQ: BKR), the oilfield services firm whose rig data is widely tracked as a proxy for upstream activity. The gains came as crude oil prices held above the $100 mark, a level that typically encourages producers to expand drilling programs.
The total U.S. rig count climbed to 591 active rigs, a figure that stands 52 units above the same week a year earlier. Within that total, oil-directed rigs increased by one to 450 — 34 more than at this point last year. Natural gas rigs added two to reach 132, up 14 year over year, while miscellaneous rigs — a small category covering other well types — held flat at 9.
The weekly rig count is closely watched because it offers a near-real-time read on upstream spending, which covers exploration and production drilling. Sustained additions to the oil rig count generally signal producers responding to stronger prices, though the pace of additions in recent years has been measured, as many operators have prioritized capital discipline and returning cash to shareholders over aggressive growth.
The uptick arrives alongside elevated crude benchmarks, with oil trading above $100 per barrel in recent sessions. Higher prices improve drilling economics and can support activity across the energy supply chain — from exploration and production companies to service providers and drilling contractors.
Shares of Baker Hughes closed at $57.39, down 3.51% from the prior close of $59.48, giving the company a market capitalization of roughly $57 billion. Smaller drilling contractor Drilling Tools International (NASDAQ: DTI) finished essentially flat at $2.61, unchanged on the session, with a market cap near $92 million.
The rig data lands ahead of upcoming earnings reports from major operators and service companies, which may offer further detail on how sustained higher prices are translating into drilling budgets and activity levels across U.S. shale basins and other producing regions.
What to watch
- Next Friday’s Baker Hughes weekly rig count for continuation of the upward trend in oil and gas rigs.
- Upstream operators’ quarterly earnings and 2024 capital expenditure guidance for confirmation of increased drilling budgets.
- U.S. Energy Information Administration production and inventory reports for signals on output growth.
- Crude oil price movements relative to the $100 level, a key input for drilling economics.
Source: original release
