US oil rig count edges higher, little impact from firm WTI prices

Quantum Commodity Intelligence - The US oil rig and frac spread count saw only small increases last week despite the surge in WTI prices, data showed Monday, following a warning from Rystad Energy that it would take nine months before there could be a meaningful increase in shale oil supplies. 

The oil rig count gained two to a total of 378 and the gas rig count also gained two to 101 for the week ending July 9, according to Baker Hughes.

Although the trend is higher, the US oil rig has only gained 37 rigs since the end of April.

The US frac spread count gained four to a total of 238, data from the American Oil and Gas Reporter showed.

The frac spread is the basic equipment that an oil field service company uses for hydraulic fracturing.

The US frac spread has gained 26 since the end of April.

"Even if the US shale industry wanted to produce more, the time required from a price signal to a significant production impact is at least nine months," said Artem Abramov, head of shale research at Rystad Energy in a statement.

That was because of the "the time it takes to make an investment decision, the months needed from spud to frac end, plus the last stage from frac end to peak production," he explained.

There were around 300 active frac crews when the Covid pandemic struck in March 2020, analysts noted.

There were around 680 oil rigs in the US at the start of March 2020, and 110 gas rigs.