The number of oil and natural gas rigs operating in North America fell this week, the third decline over the past four weeks amid elevated oil prices and Russia’s war in Ukraine.
The number of oil and gas rigs fell from 839 to 810 due to a decline in Canadian oil rigs from 176 to 140, according to data from oil services giant Baker Hughes. This is the second consecutive week in which a steep decline in Canadian rigs led the total for North America down.
U.S. rigs actually increased by 7 to 670 and Gulf of Mexico rigs climbed by one to 12. The additional U.S. rigs were all oil rigs, bringing the U.S. total oil rigs up to 531. Six new rigs went up in Texas, one in Pennsylvania, two in Louisiana, and one in North Dakota. Alaska, Ohio, and New Mexico each lost one rig.
The bulk of the Canadian decline was in oil rigs, which plunged by 27.
The price of West Texas Intermediate crude contracts rose around one percent on Friday to around $113.50. The U.S. average for a gallon of gasoline was $4.243, seven-tenths of a penny more than the day before and down arouond cents from a week ago. Compared with a month ago, prices are up by more than 67 cents.
Oil producers say it will take several months to increase production. Many are wary of increasing production too quickly, fearing both a return of the oversupplied conditions that inflicted severe financial losses in the previous decade and Democratic initiatives aimed at curtailing or halting fossil fuel development and destroying demand in the name of fighting climate change.