The weekly Baker Hughes rig count data shows:
- Oil rigs +2 at 533
- Natural gas rigs +1 at 138
- Total rigs +3 at 673
This week, Pres. Biden threatened fines on drillers for unused federal permits. The move designed to encourage more production, but may actually lead to further disenfranchising oil producers who are dealing with higher costs that is eating into the windfall gains from higher prices. Biden's relationship with oil producers is also on shaky grounds as result of his desire to slow domestic production, and increase alternative forms of energy.
U.S. oil fields are pumping about 11.7 million barrels a day, about 10% lower than they were prior to the outbreak of the Covid-19 pandemic, despite the doubling in domestic crude prices since the beginning of 2021.
Crude oil is trading at $99.40. That's down about -$0.87 on the day