US Oil, Gas Drillers Hang Back in Volatile Market

US oil and gas operators have shown a cautious stance towards new drilling activity, even as the overall count of working rigs edged higher last week, according to fresh figures from oilfield services group Baker Hughes.

The data placed the total number of active US oil and gas rigs at 581, an increase of 44 compared with the same week a year earlier. The rise was driven not by the main drilling categories but by the miscellaneous segment, which added a single unit to reach 10. Oil-directed rigs held steady at 445, while gas rigs were unchanged at 126. Both figures remain higher than year-ago levels, by 21 and 18 respectively.

There were mixed signals across the major shale plays. The Permian Basin, the largest US producing region, lost five rigs to fall to 256, leaving it nine below where it stood a year ago. By contrast, the Eagle Ford added three rigs to reach 47, six more than a year earlier. Well completion activity firmed slightly, with Primary Vision's frac spread count rising by five to 205 crews.

Despite the restrained rig picture, US crude output continued to climb. Figures from the Energy Information Administration showed production averaging 13.86 million barrels per day for the week ending 3 July, up from 13.81 million the previous week and around 475,000 barrels per day higher than a year ago. Oil prices softened on the day of reporting, with Brent slipping to around $75.72 and WTI easing to about $71.26 a barrel, though both remained higher than the prior week amid renewed Middle East risk premiums.

For Malaysian and Southeast Asian maritime and oil and gas readers, the reluctance of US operators to expand drilling despite rising output underlines a market where producers are prioritising capital discipline over aggressive growth. Continued US production strength keeps downward pressure on global supply balances, shaping the price environment that regional operators, offshore service providers and charterers must navigate. With volatility linked to Gulf tensions still present, vessel operators and drilling contractors serving the region's fields will be watching whether subdued US activity supports firmer prices or signals broader caution in upstream spending.