The U.S. rig count is up again this week as companies scramble to fill supply gaps caused by Russia's war against Ukraine

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U.S. rig count increases again this week as Russia's war against Ukraine drives demand

Jordan Vonderhaar / Bloomberg

The U.S. rig count rose again this week as companies work to take advantage of high oil and gas prices, and to help make up for Russian supply lost to the market due to sanctions for its invasion of Ukraine. The number of operating drill rigs rose by 7 nationally to 705 this week, according to oil field services company Baker Hughes. Oil and gas companies have added 257 rigs in the past year, a 57 percent increase from the 448 operating in the same week of 2021.Companies continue to face mounting pressure to up production in an effort to cool rising consumer prices and help meet global demand, which is growing faster than supply.

Despite those issues, with the price of crude oil at or above $100, experts still expect production in places like the Permian Basin of Texas to surge, potentially hitting new records after an “all-time high” number of drilling permits issued in March of this year.

 

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