Amid Soaring Oil, North American Rig Count Slowly Inches Up

An oil rig is seen in Stoughton, Saskatchewan, Canada on October 20, 2019. - On the eve of
KATIE SCHUBAUER/AFP via Getty Images

The number of oil rigs operating in North America climbed by a fraction of a percent last week as gasoline prices headed toward all-time highs.

The total number of oil rigs in North America increased by a total of two, rising from 867 to 869, according to Baker-Hughes.

The number of rigs in the U.S. did climb significantly, rising from 650 to 663.  That amounts to a two percent gain, which is below the long term average of a five percent increase.

The number of rigs in the Gulf of Mexico fell from 12 to 11. Canadian rigs declined from 217 to 206.

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.

Gasoline prices on Friday reached their highest ever level before adjusting for inflation. This is the fifth consecutive day of record-high prices.

The Biden administration has been falsely claiming that it has not discouraged oil production in recent days, highlighting Democrat fears that the consequences of their climate change agenda is politically unpopular.

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